Calculate the production possibility frontier for A. For case (a), the PPF Displ
ID: 1185029 • Letter: C
Question
Calculate the production possibility frontier for A.
For case (b), draw the points on the PPF for x = 0, 1, 2, 3 and 4.
For case (b),the PPF Displays (Increasing, Decreasing, Or Constant Opportunity Cost)andthe marginal rate of transformation at x = 3 is
For case (c), draw the production possibility frontier when x = 0, 1, 2, 3, and 4.
For case (c), the marginal rate of transformation at (2, 10) is
For case (c),the PPF Displays (Increasing, Decreasing, Or Constant Opportunity Cost)
Explanation / Answer
for case a) the avg slopes is btw ( 6,0)and (3,2) i.e -2/3.......................... for case b) the points are (0,16) (1,9) (2,4) (3,1) (4,0) rate of deformation is (4-1)/(2-3) i.e -3................. lly substitute the x values in c) equations we get realtions btw lx and kx and we get the valu of y hence we get points.......................for marginal rate of transformation slope btw (2,10) and the previous point (2,y)..........
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