Using Figure 1.3 above, an increase in the capacity to produce can be represented by a movement from: 1: Point D to Point C.2: Point F to Point D.3: Point B to Point C.4: Point B to Point F. The diagram in Figure 1.3 is a Production Possibility Frontier (PPF) graph, illustrating the trade-offs between the production of two goods: brooms and mops. **Axes:**- The horizontal axis represents the output of brooms.- The vertical axis represents the output of mops.**Curves:**- There are two curves depicted: PPF1 and PPF2. Each curve represents a different production possibility frontier. - **PPF1**: The inner curve, indicating a certain level of resources and technology available. - **PPF2**: The outer curve, suggesting an improvement in resources or technology, allowing for greater production capacity.**Points:**- **Point A**: Lies inside PPF1, indicating underutilization of resources.- **Points B, C, and D**: Positioned on PPF1, indicating efficient production points where resources are fully utilized.- **Point E**: Positioned between PPF1 and PPF2, implying potential outputs beyond current capabilities with PPF1 but accessible with PPF2 resources.- **Point F**: Lies on PPF2, showcasing an efficient production level with enhanced resources or technology.This graph is instrumental in understanding opportunity costs, efficiency, and economic growth.

A production possibility curve is a curve that represents the combination of output that firms can…

Answered: Using Figure 1.3 above, an increase in…

Using Figure 1.3 above, an increase in the capacity to produce can be represented by a movement from: 1: Point D to Point C. 2: Point F to Point D. 3: Point B to Point C. 4: Point B to Point F.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

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Using Figure 1.3 above, an increase in the capacity to produce can be represented by a movement from:

1: Point D to Point C.

2: Point F to Point D.

3: Point B to Point C.

4: Point B to Point F.

The diagram in Figure 1.3 is a Production Possibility Frontier (PPF) graph, illustrating the trade-offs between the production of two goods: brooms and mops.

**Axes:**
- The horizontal axis represents the output of brooms.
- The vertical axis represents the output of mops.

**Curves:**
- There are two curves depicted: PPF1 and PPF2. Each curve represents a different production possibility frontier.

- **PPF1**: The inner curve, indicating a certain level of resources and technology available.
- **PPF2**: The outer curve, suggesting an improvement in resources or technology, allowing for greater production capacity.

**Points:**
- **Point A**: Lies inside PPF1, indicating underutilization of resources.
- **Points B, C, and D**: Positioned on PPF1, indicating efficient production points where resources are fully utilized.
- **Point E**: Positioned between PPF1 and PPF2, implying potential outputs beyond current capabilities with PPF1 but accessible with PPF2 resources.
- **Point F**: Lies on PPF2, showcasing an efficient production level with enhanced resources or technology.

This graph is instrumental in understanding opportunity costs, efficiency, and economic growth.

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