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Figure 3-6 Maxines Production Possibilities Frontier Daisys Production Possibilities Frontier TA 20 T 3 6 9 12 15 18 21 24
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Answer #1

If we add the production possibilities together we can observe that the maximum number of tarts that they can produce together is 26. And the maximum number of pies they can produce together is 27. We follow that

  • Maxine produces 5 tarts, and 2 pies while Daisy produces 20 tarts. Together they produce 25 tarts and 2 pies so A is possible
  • Maxine produce 2 tarts and 8 pies while Daisy produces 20 tarts. Together they produce 22 tarts and 8 pies so B is not possible

Select option B.

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