Question

A country has 13,000 hours of labor to allocate across the production of two types of products: iPhones and apples. Each iPhone requires 30 hours of labor to produce and each apple requires 40 hours of labor to produce. In a world with scarce food and hungry technology consumers, surprisingly both goods sell for $100 per unit on the open market.

The country's policy makers are considering two options for production:

Option A: 200 iPhones and 150 apples

Option B: 100 iPhones and 250 apples

Which of the following is true?

Answer 1

iphone takes 300 hours only to produce and apples need 400 hours for production.

And we have just 13,000 hours in total for the the production of both goods.

And the price of both the goods is same that is 100$.

Now, due to scarcity of food and hunger, there is more demand of apples. So, producers will produce apples more.

Also, the production of option B, is also affordable.

So, option B is better option to adopt.