The economy of Nashville is producing both guitars and Cadillacs. The production possibilities frontier for guitars and Cadillacs is shown in the accompanying figure, along with an indifference curve showing the utility of a representative consumer. The economy is currently operating at point A, where it is both productively efficient and efficient in exchange. If, at?A, the marginal utility of another guitar is 10, and the marginal utility of another Cadillac is 5, while the marginal product of labor in the guitar industry 10, what must the marginal product of labor be in producing Cadillacs?

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Cadillacs PPF Guitars