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Production possibilities frontier

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Construct a production possibilities frontier for a nation facing increasing opportunity costs for producing food and video games.

Explain how this curve represents the most efficient use of this nation's resources. Show how the frontier changes, given the following events:

? A new and better fertilizer is invented.
? There is an increase in the amount of labor, which can be employed in both the agricultural sector and the video game sector.
? A new programming language is invented that is less costly to code and is more memory-efficient, enabling the use of smaller games cartridges.
? A heat wave and drought results in a 10 percent decrease in usable farmland.

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Construct a production possibilities curve for a nation facing increasing opportunity
costs for producing food and video games. Show how the PPC changes ...

Solution Summary

Production possibilities frontier is investigated. The expert explains how this curve represents the most efficient use of this nation's resources.

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