A farm grows wheat and produces pork. The marginal cost of producing each of the

Question

A farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more is produced. Draw the firm's PPF. Label it PPF1. The farm adopts a new technology that allows it to use fewer resources to harvest wheat Draw a PPF that shows the impact of the new technology. Label it PPF2. John and Betsy grow tomatoes and lettuce. John has a comparative advantage in growing tomatoes if A. John has an absolute advantage in growing both tomatoes and lettuce. B. John can produce enough vegetables for himself and for Betsy. C. John's opportunity cost of producing tomatoes is less than Betsy's opportunity cost of producing tomatoes. D. Betsy's opportunity cost of tomatoes is less than her opportunity cost of lettuce. If John also has an absolute advantage in growing tomatoes and lettuce, he will A. have an equal opportunity cost in all activities. B. be a better farmer than Betsy. C. be unable to trade with Betsy. D. have a comparative advantage one activity but not both. In Frigidia, the marginal cost of producing a pair of skis is 4 pounds of fish per month. When Frigidia achieves allocative efficiency, the marginal benefit of the last gallon of sunscreen produced will equal [R] pounds of fish per month.

Explanation / Answer

The graph is in this shape because u cannot simultaneously increase the production of both the products simultaneously. If one increases then other one will decrease

You can read this and all things will become clear to you

http://www.investopedia.com/terms/p/productionpossibilityfrontier.asp

All the optional answers choices which have been made in the questions are right.

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