Figure 3-3
Ice cream and cones are 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 can we infer from this information?
A) that this is not an efficient combination for neither Ben nor Jerry
B) that Ben and Jerry are both allocating 1/2 their time to the production of each good
C) that no other production point is as efficient for both Ben and Jerry to produce as point A
D) that the two must be trading with each other

Question

Figure 3-3
Ice cream and cones are 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 can we infer from this information?
A) that this is not an efficient combination for neither Ben nor Jerry 
B) that Ben and Jerry are both allocating 1/2 their time to the production of each good 
C) that no other production point is as efficient for both Ben and Jerry to produce as point A 
D) that the two must be trading with each other

Quizplus · Accepted Answer

If Ben and Jerry are both producing at point A on their production possibilities frontiers, it implies they are allocating their resources equally between the two goods, hence spending 1/2 of their time on each.

Figure 3-3 Ice Cream and Cones Are Measured in Kilograms