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Suppose Goods X and Y Are Produced Along a Production 4X5004X2\frac { - 4 X } { \sqrt { 500 - 4 X ^ { 2 } } }

Question 4

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Suppose goods X and Y are produced along a production possibilities frontier 4X2 + Y2 = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is 4X5004X2\frac { - 4 X } { \sqrt { 500 - 4 X ^ { 2 } } } .How much X should be produced?


A) 0
B) 5
C) 10
D) 20

Correct Answer:

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