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Harman [31]
4 years ago
14

Smallville has a linear production possibility frontier in the production of good X and good Y. It can produce 6 of X per hour o

r 8 of Y per hour. Suppose it has 240 hours of labor and divides labor hours equally between production of good X and good Y. What is the MAXIMUM number of good Y it can produce in the time it has allocated to Y production?
Business
1 answer:
aliina [53]4 years ago
6 0

Answer:

The maximum amount of good Y produced will be 960.

Explanation:

Smallville has a linear production possibility frontier in the production of good X and good Y.

It can produce 6 of X per hour or 8 of Y per hour.  

It has 240 hours of labor and divides labor hours equally between the production of good X and good Y.

It means that both good X and good Y get 120 hours of labor each.  

The amount of good Y produced in 120 hours

= 120\ \times\ 8

= 960 units

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