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expeople1 [14]
2 years ago
13

1) The PPF: Draw a Production Possibilities Frontier (PPF) for the production of two goods, machine tools (a capital good) and d

onuts (a consumer good). Put machine tools on the vertical axis and donuts on the horizontal axis. Briefly explain what the PPF curve represents.

Chemistry
1 answer:
mario62 [17]2 years ago
3 0

Answer:

The diagram of the Possibilities Frontier (PPF) is shown on the first uploaded image

A Possibilities Frontier (PPF)  can also be referred to as the production possibility curve and it can be defined as a curve that denotes the production of two types of goods in an economy at a given period of time in different proportion of combinations

When this curve shift to the right it means that there is technological advancement in that economy

If this curve a points lies within it then the resources are not fully utilized    

Explanation:

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