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    production possibilities frontiers for the U.S. and Mexico

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    There are 2 countries, the U.S. and Mexico, that produce 2 goods, manufacturing and agriculture. Manufacturing output in the U.S. is a function of labor and capital inputs. Agriculture output in the U.S. is a function of labor inputs only.

    Manufacturing output in Mexico is a function of labor input only. Agriculture output in Mexico is a function of labor and capital.

    Manufacturing is capital intensive and agriculture is labor intensive. The U.S. is relatively more capital abundant.

    My problem: What do the production possibilities frontiers for the U.S. and Mexico look like?

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    https://brainmass.com/economics/production/production-possibilities-frontiers-usa-mexico-17354

    Solution Preview

    Hello,

    I cannot draw a graph in this box; however, I can explain the concepts. Because labor is the only input that both commodities share for both countries the PPF curve would still be a curve, which indicates the diminishing ...

    Solution Summary

    What the production possibilities frontiers for the U.S. and Mexico look like are determined.

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