For a farm producing two crops and operating on the Production Possibilities Frontier (curve) where revenue is maximized, a reduction in the price of one crop will:

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The Production Possibilities Frontier (PPF) represents the maximum possible output combinations of two or more goods given a set of inputs. A change in the price of one of the goods does not affect the technological or resource constraints represented by the PPF, hence it does not shift the PPF. The isorevenue line, which represents combinations of goods that yield the same revenue, would shift, but not outward in response to a price reduction. Costs of production are related to the production process, not directly to the price of the output, so a reduction in price does not inherently increase production costs.

For a Farm Producing Two Crops and Operating on the Production