Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country A could potentially make would be:
A) (1,000 iPods, 500 tablets).
B) (500 iPods, 500 tablets).
C) (500 iPods, 250 tablets).
D) (750 iPods, 150 tablets).

Question

Quizplus · Accepted Answer

Since a worker in Country A can either make 10 iPods or 5 tablets, if all 100 workers were producing iPods, Country A could only make 1,000 iPods (100 workers x 10 iPods per worker). Similarly, if all 100 workers were to produce tablets, Country A could only make 500 tablets (100 workers x 5 tablets per worker). Therefore, the combination of production that maximizes the total output would be to allocate 50 workers to produce iPods and 50 workers to produce tablets. This would result in a production of 500 iPods (50 workers x 10 iPods per worker) and 250 tablets (50 workers x 5 tablets per worker). Therefore, the correct answer is C.

Suppose That a Worker in Country a Can Make Either