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Production possibilities frontier

Not sure how to apply the following proposed society's possibility curve to study questions.

Output (per year)
Possibility Food(millions of tons) Tractors(millions)
A 0 30
B 4 28
C 8 24
D 12 20
E 16 14
F 20 8
G 24 0
(a) Is it possible for the society to produce 30 million tons of food per year?
(b) Can it produce 30 million tractors per year?
(c) Suppose this society produces 20 million tons of food and 6 million tractors per year. Is it operating on its production possibilities curve? If not, what facts might account for this?

Solution Preview

The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost.

(a) Is it possible for the society to produce 30 million tons of food per year?
No as the maximum it can produce is 24 tons of food
(b) Can it produce 30 million tractors per year? ...

Solution Summary

This discusses the production possibilities frontier

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