Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids.
-Refer to Figure 2-2.If Vidalia chooses to produce 50 dozen roses,how many orchids can it produce to maximize production?

Question

Figure 2-2  Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids.
-Refer to Figure 2-2.If Vidalia chooses to produce 50 dozen roses,how many orchids can it produce to maximize production?

Quizplus · Accepted Answer

From the production possibilities frontier graph, we can see that if Vidalia produces 50 dozen roses, it can produce at most 60 dozen orchids. This is the point where the production possibilities frontier touches the vertical axis (representing orchids) and represents the maximum possible production of orchids given the production of 50 dozen roses. Therefore, the best choice to maximize production is 60 dozen orchids.

Figure 2-2 Figure 2-2 Above Shows the Production Possibilities