Macroeconomics 11th Edition by Michael Parkin

تمرين 19

A farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more of it is produced.
a. Make a graph that illustrates the farm's PPF.
b. The farm adopts a new technology that allows it to use fewer resources to fatten pigs. Use your graph to illustrate the impact of the new technology on the farm's PPF.
c. With the farm using the new technology described in part (b), has the opportunity cost of producing a ton of wheat increased, decreased, or remained the sameExplain and illustrate your answer.
d. Is the farm more efficient with the new technology than it was with the old oneWhy