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McKenna Olson
on Nov 12, 2024

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For each pair of jeans Casina produces,it gives up the opportunity to make 50 pounds of chocolate truffle.Marina can produce one pair of jeans for every 100 pounds of chocolate truffle it produces.Suppose the data is converted into production possibilities frontiers (PPFs) ,with constant opportunity costs,for both countries.While the pounds of chocolate truffle produced is measured on the vertical axis,the pairs of jeans produced are measured along the horizontal axis.Identify the correct statement in this case.

A) The slope of Marina's production possibilities frontier is equal to −50.
B) The slope of Marina's production possibilities frontier is flatter than Casina's.
C) The slope of Marina's production possibilities frontier is equal to −0.02.
D) The slope of Marina's production possibilities frontier is steeper than Casina's.
E) The slope of Casina's production possibilities frontier is equal to −0.01.

Production Possibilities Frontiers

A curve depicting the maximum output combinations of two goods that can be produced given the resources and technology.

Opportunity Cost

The value of the best alternative that must be forgone when making a choice.

Chocolate Truffle

A type of chocolate confectionery, traditionally made with a chocolate ganache center coated in chocolate, cocoa powder, or chopped toasted nuts.

  • Comprehend the configuration and consequences of the production possibilities frontier.
  • Comprehend the role and assessment of opportunity costs in the realm of international trade.
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Geetyr RedyngNov 17, 2024
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