Question

The figure to the right illustrates the​ trade-offs facing Ford Motor Company. The line in the graph is​ Ford's production possibilities frontier.

If Ford uses all its resources to produce​ trucks, how many can it​ produce?  

10 thousand trucks per day.  

​(Enter a numeric response using a real number rounded to one decimal​ place.)

Suppose Ford is currently building 3 thousand cars per day. To build an additional 1 thousand​ cars, how many fewer trucks can be​ built?  

nothing thousand fewer trucks per day.

& Concept: PPF 1 The figure to the right illustrates the trade-offs facing Ford Motor Company. The line in the graph is Ford's production possibilities frontier If Ford uses all its resources to produce trucks, how many can it produce? 10 thousand trucks per day Enter a numeric response using a real number rounded to one decimal place) Suppose Ford is currently building 3 thousand cars per day. To build an additional 1 thousand cars, how many fewer trucks can be built? thousand fewer trucks per day

Answer 1

(1) Using all resources, 10 thousand trucks can be produced.

(2) When 3 thousand cars are made, 9 thousand Trucks and produced. When 4 thousand cars are made, 8 thousand Trucks and produced.

To build additional 1 thousand cars, 1 thousand fewer trucks (= 9 thousand - 8 thousand) will be built.