Question

Look at the scenario Linear Production Possibility Frontier. What is the maximum number of pairs of socks Largetown can produce?
A) 40
B) 20
C) 2
D) 4

Answer 1

Answer:

A) 40

Explanation:

The chart is not very clear, but the information included is:

• it takes four hours to produce one shirt
• it takes two hours to produce one pair of socks

If the total number of labor hours is 80, then the maximum number of socks produced will = 80 hours / 2 hours per pair of socks = 40 pairs of socks

The total number of shirts produced would be 20.