Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
12th Edition
ISBN: 9781285738352
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 1VQP
To determine
Deriving production–possibility frontier (
Expert Solution & Answer
Explanation of Solution
Production–possibility frontier is the combination of different combinations of two goods that a country can produce, while all the resources are utilized. Assume that a country is producing two goods say X and Y. Then, the given Table (1) shows different combinations of goods that a country can produce with fully utilized resources as shown below:
Table 1
| Combination | Good X | Good Y |
| A | 10 | 0 |
| B | 5 | 5 |
| C | 0 | 10 |
Use the given table to depict the production–possibility frontier as shown below:
In Figure 1, the horizontal axis represents good X and the vertical axis represents good Y. In the first combination, the country can produce 10 units of good X and 0 unit of good Y. In the second combination, the country can produce 5 units of both the goods. In the third combination, the country can produce 0 unit of good X and 10 units of good Y. The country can produce any of the given combinations of goods. These combinations of goods form production–possibility frontier.
Economics Concept Introduction
Production–possibility frontier (PPF): Production–possibility frontier or PPF curve shows the combination of the two commodities that the country produced efficiently using the given technology.
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Chapter 2 Solutions
Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1VQPCh. 2 - Prob. 2VQPCh. 2 - Prob. 3VQPCh. 2 - Prob. 4VQPCh. 2 - Prob. 5VQPCh. 2 - Prob. 1QP
Ch. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNG
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