Production possibilities represent the various combinations of two goods that can be produced given (a) fixed resources and (b) fixed technology. All combinations on the production possibilities curve represent the full-utilization of resources. Any point inside the production possibilities curve indicates that resources are under-utilized and more output could be produced with the available resources. Any point outside the production possibilities curve indicates that the available resources can't support the production of the given output combination. At full-utilization of resources, the only way to increase the production of both goods is by shifting the production possibilities curve. Now consider my backyard garden. I have 100 square feet of allocated space for the vegetable garden which is my fixed resource. for simplicity, I am growing only two vegetables: tomatoes and eggplant. If I grow all tomatoes, I can get a total of 10lbs, and if I grow all eggplant 8lbs. By producing both, I am able to get 5lbs of tomatoes and 4 lbs of eggplant, which gives the details of my production possibilities. Consider all the ways production possibilities can be shifted outwards. Name at least two possible ways I can shift my production possibilities outwards given the scenario. Think in more creative ways of increasing my vegetable production by applying the rules of PPC.
Production possibilities represent the various combinations of two goods that can be produced given (a) fixed resources and (b) fixed technology. All combinations on the
Now consider my backyard garden. I have 100 square feet of allocated space for the vegetable garden which is my fixed resource. for simplicity, I am growing only two vegetables: tomatoes and eggplant. If I grow all tomatoes, I can get a total of 10lbs, and if I grow all eggplant 8lbs. By producing both, I am able to get 5lbs of tomatoes and 4 lbs of eggplant, which gives the details of my production possibilities.
Consider all the ways production possibilities can be shifted outwards. Name at least two possible ways I can shift my production possibilities outwards given the scenario. Think in more creative ways of increasing my vegetable production by applying the rules of PPC.
PRODUCTION possibility curve means combinations of two goods that can be produced with given level of resources and technology .
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