Figure 3-3
Ice cream is measured in kilograms.
-Refer to Figure 3-3. Suppose that Ben and Jerry have both decided to produce at point A on their production possibilities frontiers. What do we know?
A)This is not an efficient combination for either Ben or Jerry.
B)Ben and Jerry are both allocating 1/2 their time to the production of each good.
C)no other production point is as efficient for both Ben and Jerry to produce as point A.
D)Both should always attempt to produce an equal number of cones and ice cream.

Question

Figure 3-3
Ice cream is measured in kilograms. 
-Refer to Figure 3-3. Suppose that Ben and Jerry have both decided to produce at point A on their production possibilities frontiers. What do we know?
A)This is not an efficient combination for either Ben or Jerry. 
B)Ben and Jerry are both allocating 1/2 their time to the production of each good. 
C)no other production point is as efficient for both Ben and Jerry to produce as point A. 
D)Both should always attempt to produce an equal number of cones and ice cream.

Quizplus · Accepted Answer

At point A on their production possibilities frontiers, Ben and Jerry are both allocating 1/2 their time to the production of each good, assuming point A represents a balanced allocation of resources.

Figure 3-3 Ice Cream Is Measured in Kilograms