Question

The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to ________ and it ________ as more cloth is produced. -MPLC/MPLF; becomes steeper -MPLF/MPLC; becomes steeper -MPLC/MPLF; is constant -MPLF/MPLC; becomes flatter -MPLF/MPLC; is constant

Answer 1

Answer:

-MPLC/MPLF; becomes steeper

Explanation:

A production–possibility frontier (PPF) refers to the curve which locus of different combinations of quantity of two goods that a country can produce from its given level of resources and technology, or factors of production.

The assumption of the specific factor model is that in perfectly competitive market, two goods can be produced by a country using two factors of production, for example capital and labor, and it is assumed that one of the two factors is specific to a particular industry.

The slope of the PPF under is the ratio of the horizontal axis to the vertical axis with a minus, and the PPF becomes steeper under a specific factor model as more of the good on the the horizontal is produced using its specific factor.

Therefore, from the question, the specific factors model is equal to -MPLC/MPLF and it becomes steeper as more cloth is produced.

Answer 2

Answer:

MPLF/MPLC; becomes steeper

Explanation:

The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to MPLF/MPLC and it becomes steeper as more cloth is produced.

Where

- MPLC is Marginal Product of Labor for Cloth.

- MPLF is Marginal Product of Labor for Food.