Question

If the production possibilities frontier shown is for 24 hours of production, then how long does it take Brazil to make one pound of cashews?

Answer 1

Brazil takes 0.5 hours to produce one pound of cashews.

Step-by-step explanation:

To calculate the time it takes Brazil to produce one pound of cashews, we can use the formula:

Time = Total hours available / Quantity produced

Given that the production possibilities frontier shown is for 24 hours of production, and assuming Brazil produces at its maximum capacity, we can calculate the time as follows:

Time = 24 hours / 48 pounds = 0.5 hours per pound

This means that Brazil takes 0.5 hours to produce one pound of cashews at its maximum production capacity.

In this context, the production possibilities frontier represents the maximum combination of goods that can be produced given the available resources and technology. By understanding this concept, we can determine the efficiency and opportunity cost of producing different goods within a specific time frame.

Understanding the production possibilities frontier is crucial for analyzing an economy’s efficiency in resource allocation and identifying the trade-offs involved in choosing between different goods and services for production.