URGENT Can the economy of Macrostan produce 15 bags of chips at the same time that they produce 25 bags of pretzels? Why or why not? * need this today

The economy of Macrostan cannot be able the good.

In conclusion, the lack of resources will not enable the economy to produce 15 bags of chips at the same time that they produce 25 bags of pretzels.

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This is the production possibilities chart that the question refers to:

Goods Produced     A      B     C     D     E

Chips (bags)             0      10    12    14    16

Pretzels (bags)         50    40   30   20    0

Can the economy of Macrostan produce 15 bags of chips at the same time that they produce 25 bags of pretzels? Why or why not?

The answer is no. The economy of Macrostan cannot produce 15 bags of chips at the same time they produce 25 bags of pretzels.

The reason is in the production possibilities chart above. We can see that if Macrostan produces 14 bags of chips, it can only produce 20 bags of pretzels, and if it produces 16 bags of chips, then, it cannot produce any bags of pretzels.

From this information we can infer than if the economy of Macrostan produces 15 bags of chips, then it can only produce 10 bags of pretzels.

Therefore, the combination of 15 bags of chips and 25 bags of pretzels is not possible. This combination lies outside the production possibilties frontier because the economy of Macrostan does not have enough resources to reach that output combination.

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