Smallville Has a Linear Production Possibility Frontier in the Production

question 316

Multiple Choice

Smallville has a linear production possibility frontier in the production of good X and good Y. It can produce 6 of X per hour or 8 of Y per hour. Suppose it has 240 hours of labor and divides labor hours equally between production of good X and good Y. What is the MAXIMUM amount of good Y it can produce?

• A)960
• B)30
• C)14
• D)6

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