Suppose residents of Montana operate on their production possibility frontier and want to see increased wheat production as well as an increase in the production of fly-fishing rods.According to the production possibility frontier, this cannot happen without new resources or technological improvement.

Question

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The production possibility frontier (PPF) illustrates the maximum possible output combinations of two goods that can be produced with available resources and technology. To increase the production of both goods simultaneously, new resources or technological advancements are necessary, as the PPF represents the limit of current capabilities.

Suppose Residents of Montana Operate on Their Production Possibility Frontier