Suppose a country produces only two types of goods. If it specializes in the production of one good, then the country will be operating at one of the endpoints of its production possibilities schedules.

Question

Quizplus · Accepted Answer

Specializing in the production of one good means allocating all resources to it, which places the country at one endpoint of its production possibilities frontier, where it produces maximum of one good and none of the other.

Suppose a Country Produces Only Two Types of Goods