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Smallville Has a Linear Production Possibility Frontier in the Production

Question 265

Multiple Choice

Smallville has a linear production possibility frontier in the production of good X and good Y.It can produce 6 of X per hour or 8 of Y per hour.Suppose it has 240 hours of labor and divides labor hours equally between production of good X and good Y.What is the MAXIMUM number of good Y it can produce in the time it has allocated to Y production?


A) 960
B) 30
C) 720
D) 6

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