Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels

Question

2 years ago

10

of corn using 100 worker hours. If it decides to produce 60 barrels of oil, how many bushels of corn can it produce

1 answer:

Hatshy [7] · Answer 1 · 2022-12-16T04:00:23+03:00

Answer: 10 bushels

Explanation:

If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:

= 100 / 100

= 1 work hour

For bushels however, 1 worker hour produces:

= 25 / 100

= 0.25 bushels of corn

If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.

Bushels of corn produced is therefore:

= 40 * 0.25

= 10 bushels