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4. Production Possibility Frontier An economy consists of three workers: Charles, Gilberto, and Lorenzo. Each works 10 hours a day and can produce two services:
4. Production Possibility Frontier
An economy consists of three workers: Charles, Gilberto, and Lorenzo. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Charles can either mow 1 lawn or wash 1 car; Gilberto can either mow 1 lawn or wash 2 cars; and Lorenzo can either mow 2 lawns or wash 1 car.
For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row.
Scenario | Lawns Mowed | Cars Washed |
---|---|---|
All three spend all their time mowing lawns. (A) | ||
All three spend all their time washing cars. (B) | ||
All three spend half their time on each activity. (C) | ||
Charles spends half his time on each activity, while Gilberto only washes cars and Lorenzo only mows lawns. (D) |
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