suppose that an agricultural household produces (and consumes) corn and potato

Subject:EconomicsPrice:2.89 Bought3

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suppose that an agricultural household produces (and consumes) corn and potato. This household can buy and sell in the market its production. the current price of potato is $6/pound and the current price of corn is $3/pound. If the household is operating in a point of their PPF where the marginal rate of transformation is 1.5 (reducing the production of potato by 1 pound increases the production of corn by 1.5 pounds) what should the household do to maximize their profits? 

 

Group of answer choices

 

 

nothing, the household is already in the optimal production bundle

 

we can not determine it. we need more information

 

increase the production of corn

 

increase the production of potato