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. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?

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. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?

Quizplus · Accepted Answer

To maximize production, Vidalia should produce at a point on the production possibilities frontier (PPF). If producing 60 dozen orchids, the corresponding maximum number of roses that can be produced according to the PPF is 50 dozen.

Figure 2-8 Figure 2-8 Above Shows the Production Possibilities