A small country produces only two goods, cars and computers. Given its limited resources, this country has
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Question:
- A small country produces only two goods, cars and computers. Given its limited resources, this country has the following production possibilities:
Cars Computers
0 200
25 180
50 130
75 70
100 0
- Draw the PPF.
- Suppose car production uses mainly machines (capital) and computer production uses mainly labor. Show what happens to the PPF when the amount of capital increases but labor remains unchanged.
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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