Question: CENGAGE MINDTAP Homework (Ch 02) Attempts Keep the Highest / 1 4. Shifts in production possibilities Suppose Canada produces two types of goods: agricultural and

 CENGAGE MINDTAP Homework (Ch 02) Attempts Keep the Highest / 1

4. Shifts in production possibilities Suppose Canada produces two types of goods:

CENGAGE MINDTAP Homework (Ch 02) Attempts Keep the Highest / 1 4. Shifts in production possibilities Suppose Canada produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and cars, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of cars. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. $20 350 PPF CARS (Thousands) 210 140 70 PPF 40 120 160 200 240 ALFALFA (Millions of bushels) Grade It Now

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