Consider two countries, Smallia and Grandia, that both have linear production possibility frontiers

Consider two countries, Smallia and Grandia, that both have linear production possibility
frontiers in the production of cars and bicycles. Assume that these are the only two goods that
these two countries produce. Smallia can produce either 32 bicycles or 48 cars in 4 days working
at the same rate each day and Grandia can produce either 12 bicycles or 8 cars in a single day.
Given this information and holding everything else constant, find the equation for the joint PPF
for these two countries if they work together for 2 days. Let C be the number of cars and B be the
number of bicycles.

a) C = 40 + (-3/2)B for B less than or equal to 24
 and C = 40 + (-2/3) B for B more than 24

b) C = 40 + (-1/3) B for B less than or equal to 24
 and C = 40 + (-3/2) B for B more than 24

c) C = 40 + (-2/3) B for B less than or equal to 24
 and C = 60 + (-3/2) B for B more than 24

d) C = 40 + (-2/3) B for B less than or equal to 24
 and C = 40 + (-1/2) B for B more than 24




Economics 102 midterm fall2017