Question

In: Economics

Table 3-2 Hours Needed to Make 1 Unit of Number of Units Produced in 40 Hours...

Table 3-2

Hours Needed to Make 1 Unit of Number of Units Produced in 40 Hours
Cheese Wine Cheese Wine
England 1 4 40 10
France 5 2 8 20

Refer to Table 3-2. Which of the following combinations of cheese and wine could France produce in 40 hours?

a. 2 units of cheese and 20 units of wine
b. 6 units of cheese and 5 units of wine
c. 8 units of cheese and 20 units of wine
d. 4 units of cheese and 15 units of wine

Solutions

Expert Solution

Correct Answer:

B

Working note:

With this combination of output of wine and cheese,

Total hours needed = 6*5 + 5*2

Total hours needed = 40 hours and it is produced with the 40 hours available to France,

But other alternatives require more than 40 hours, so other alternatives cannot be produced by France.


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