Question
In Utopia, resources can be used to produce guns or butter. If only guns are produced a total of 1 2 0 units of guns
In Utopia, resources can be used to produce guns or butter. If only guns are
produced
a total of 1
2
0 units of guns can be made. If only butter is produced,
6
0 units
of butter can be produced.
Assume that the opportunity cost of
making
guns is
constant. In this case:
a.
it will be inefficient to produce
9
0 units of guns and
15
units of butter
b.
it will be infeasible to produce
90
units of guns and
15
units of butter
.
c.
it will be inefficient to produc
e
15
units of guns and
9
0 units of butter
.
d.
it will be infeasible to produce
1
5 units of guns and
9
0 units of butter
.
e.
Both
a
and d
are correct
.
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