Figure 3-3
Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier
-Refer to Figure 3-3.Suppose Bob is willing to trade 6 burritos to Enid for each 10 tacos that Enid produces and sends to Bob.Which of the following combinations of tacos and burritos could Enid then consume,assuming Enid specializes in taco production and Bob specializes in burrito production?
A) 100 tacos and 200 burritos
B) 200 tacos and 130 burritos
C) 300 tacos and 60 burritos
D) 340 tacos and 40 burritos

Question

Figure 3-3
Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier  
-Refer to Figure 3-3.Suppose Bob is willing to trade 6 burritos to Enid for each 10 tacos that Enid produces and sends to Bob.Which of the following combinations of tacos and burritos could Enid then consume,assuming Enid specializes in taco production and Bob specializes in burrito production?
A) 100 tacos and 200 burritos 
B) 200 tacos and 130 burritos 
C) 300 tacos and 60 burritos 
D) 340 tacos and 40 burritos

Quizplus · Accepted Answer

If Enid specializes in taco production, she can trade 10 tacos for 6 burritos with Bob. For 300 tacos, she can trade 180 tacos for 108 burritos, leaving her with 120 tacos and 108 burritos. However, since the options are limited, the closest feasible option is 300 tacos and 60 burritos.

Figure 3-3 Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier