Question

A country can produce either 201 units of good Y or 119 units of good X. If they want to produce 31 units of good X, how many units of good Y are they able to produce? Enter a number rounded to two decimal places.

Answer 1

Answer:

148.64

Explanation:

Assuming that the means of production are uniformly divided for both products, the total production capacity used up for producing 31 units of good X is:

$C_x = \frac{31}{119}=0.2605$

The capacity remaining for good Y is:

$C_y =1 - C_x = 0.7395$

The number of units of good Y that can be produced is:

$Y = 0.7395*201=148.64$

The country is able to produce 148.64 units of good Y.