h production at the PPF. A work day less than ten hours will allow for production only at a point inside the frontier. Table 1 Production Possibilities Hours Worked Rice Grown Cloth Produced (per day) ( lbs. per month) (yards per month) 0 either 0 or 0 2 either 6 or 1 4 either 11 or 2 6 either 15 or 3 8 either 18 or 4 10 either 20 or 5 ______________________________________________________________________________________________ If Joe performs no labor no rice or cloth are produced. If Joe labors for 2 hours daily and devotes all that time on corn production he will produce 6 pounds of rice per month. If that same time is used for cloth production, 1 yard of cloth is produced but no rice. The last four rows of the table indicate the amount of rice or cloth that can be produced per month as more hours are devoted to those activities. ______________________________________________________________________________________________ _____________________________________ Production Possibility Frontier Figure 1 Rice 20 A in lbs. 18 B per month 16 C Unattainable 14 12 Z D 10 8 6 E Attainable 4 Production possibility 2 frontier F 0 1 2 3 4 5 6 7 8 9 Cloth in yards per month Rice Cloth in in lbs. yards per per Possibility month month A 20 and 0 B 18 and 1 C 15 and 2 D 11 and 3 E 6 and 4 F 0 and 5 The graph lists six points on Joe’s production possibility Frontier. Row E tells us that if Joe produces 6 pounds of rice, the maximum cloth production that’s possible is 4 yards. These same points are graphed as A, B, C, D, E, and F in the figure. The line passing through these points is the production possibility frontier, which separates the attainable from the unattainable. The attainable area contains all the possible production points. Joe can produce anywhere inside the area or on the production possibility frontier. Points outside the frontier are unattainable. Models such as these provide a structure for understanding how production ...
