reading a production possibility curve\na company that produces gold - plated baseballs and baseball bats…
reading a production possibility curve\na company that produces gold - plated baseballs and baseball bats only makes a total of 25 items per year, in any combination.\nwhich point on the graph indicates that the company is making an equal number of baseballs and bats?
Answer
Explanation:
Step1: Set up the equation
Let the number of baseballs be $x$ and the number of bats be $y$. We know $x + y=25$ and we want $x = y$. Substituting $x$ for $y$ in the first - equation gives $x+x = 25$, or $2x=25$, $x = y=12.5$ (not possible in a real - world non - fractional sense, but for the sake of the curve analysis). On the production possibility curve, we are looking for a point where the quantity of baseballs and bats is the same.
Step2: Analyze the points
Point A has approximately 20 baseballs and 5 bats. Point B has approximately 12.5 baseballs and 12.5 bats. Point C has approximately 5 baseballs and 20 bats.
Answer:
B