Figure 2-8

Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?

Question

Figure 2-8
  
Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2-8.Suppose Vidalia is currently producing 120 dozen roses per period.How many orchids is it also producing, assuming that resources are fully utilized?

Quizplus · Accepted Answer

The question implies a production possibilities frontier (PPF) scenario where resources are fully utilized. If Vidalia is producing 120 dozen roses, the corresponding number of orchids produced can be determined from the PPF, which is given as 32 dozen orchids.

Figure 2-8 Figure 2-8 Above Shows the Production Possibilities Frontier for Vidalia