If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms o

Question

iVinArrow [24]

3 years ago

6

If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms o

f Y) ____________________ and the PPF for these two goods is ______________________.

Business

1 answer:

Finger [1] · Answer 1 · 2022-05-18T11:02:10+03:00

Answer:Is always the same; a straight line

Explanation:

If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms of Y) is always the same and the PPF for these two goods is a straight line

PPF Production Possibility Frontier plays an important role in that It is used to demonstrate the point that any nation's economy reaches its greatest efficiency level. This happens when it manufactures only what it is qualified to manufacture and trades with other nations for the rest of what it needs.

Also called transformation curve, It is a decision making tool That supports that manufacturing of one commodity may increase only if the manufacturing of the other commodity decreases.