The following table contains some production possibilities for an economy for a given month.

If the production possibilities frontier is a straight line,then "?" must be
A) 100.
B) 150.
C) 200.
D) 250.

Question

The following table contains some production possibilities for an economy for a given month.

If the production possibilities frontier is a straight line,then "?" must be
A) 100. 
B) 150. 
C) 200. 
D) 250.

Quizplus · Accepted Answer

If the production possibilities frontier is a straight line, it implies that the opportunity cost of producing one good for another is constant. In this case, the slope of the line is -1/2. The highest point on the curve occurs when only Good A is produced (200 units) and no Good B is produced. Therefore, the maximum production possibility is 200 units of Good A.

The Following Table Contains Some Production Possibilities for an Economy