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A small manufacturing firm has two products that are produced using its in house 3-D printers. The budget and time constraints for this process give the production possibilities curve that is defined by the table below. If the company is currently producing 30 units of product A and 39 units of product B, can the production of product B be increased? Explain. Product A 0 10 20 30 40 50 60 Product B 51 50 46 39 29 16 0 (1 point) Responses Yes, the production of product B can be increased up to 51 by decreasing the volume for product A. Yes, the production of product B can be increased up to 51 by decreasing the volume for product A. No, the point is already on the production possibilities curve. No, the point is already on the production possibilities curve. Yes, the production of product B can be increased up to 60 by decreasing the volume for product A. Yes, the production of product B can be increased up to 60 by decreasing the volume for product A. Yes, the production of product B can be increased to whatever value is desired.

1 answer

To determine whether the production of product B can be increased from the current point of producing 30 units of product A and 39 units of product B, we can refer to the information from the production possibilities curve provided.

From the data given in the table:

  • When 0 units of Product A are produced, the maximum production of Product B is 51.
  • When 10 units of Product A are produced, Product B can be produced in a maximum of 50 units.
  • When 20 units of Product A are produced, Product B can be produced in a maximum of 46 units.
  • When 30 units of Product A are produced (your current production), Product B can be produced in a maximum of 39 units.
  • When 40 units of Product A are produced, Product B can only be produced in a maximum of 29 units.
  • When 50 units of Product A are produced, Product B can only be produced in a maximum of 16 units.
  • When 60 units of Product A are produced, Product B cannot be produced at all (0 units).

Currently, the firm is producing 30 units of Product A and 39 units of Product B. Since this point (30, 39) lies exactly on the production possibilities curve, any increase in the production of Product B would require a decrease in the production of Product A, as the production possibilities curve illustrates the trade-offs between the two products.

From the table:

  • By reducing the production of Product A, it can produce more of Product B. For example, if they reduce Product A to 20 units, they can increase Product B to a maximum of 46 units.

Given these points, the response to your question would be:

Yes, the production of product B can be increased up to 51 by decreasing the volume for product A.