Question

Suppose that we want to increase production of consumer goods to a total of 6 units. Is it also possible to continue producing 7.5 units of capital goods ?

Answer 1

Consumer goods are goods produced with the help of Capital goods.

Capital Good=Machine and Machine Parts, Parts which are used in manufacture of a tool,

Consumer Good=Chocolate, Different Commodities, Car.

Capital goods last for longer period of time, whereas Consumer goods are manufactured again and again with the help of same Capital goods.

It is given that, we want to increase production of consumer goods to a total of 6 units.

Producing 7.5 ,units of capital goods is too high for producing 6 unit of Consumer good, as Capital good last for Longer duration of time.