Chile and Argentina each produce jellybeans and peanut butter, using labor as their only resource. Each country has 1,000 hours of labor. In Chile, an hour produces a pound of jellybeans and 2 hours produce a pound of peanut butter. In Argentina, an hour produces a pound of jellybeans and 3 hours produces a pound of peanut butter. When they do not trade with each other, Chile consumes 600 pounds of jellybeans and 200 pounds of peanut butter, and Argentina consumes 400 pounds of jellybeans and 200 pounds of peanut butter. What are the endpoints of Chile's production possibilities frontier?

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Chile can produce 1 pound of jellybeans per hour, so with 1,000 hours, it can produce 1,000 pounds of jellybeans if it allocates all its labor to jellybean production. For peanut butter, since it takes 2 hours to produce a pound, with 1,000 hours, Chile can produce 500 pounds of peanut butter if it allocates all its labor to peanut butter production. These are the endpoints of Chile's production possibilities frontier.

Chile and Argentina Each Produce Jellybeans and Peanut Butter, Using