-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Measuring food on the horizontal axis,the joint production possibility frontier will have a slope of -1

Question

Quizplus · Accepted Answer

The slope of the joint production possibility frontier (PPF) represents the opportunity cost of producing one good over another. A slope of -1 indicates that the opportunity cost of producing food in terms of clothing is constant. This situation occurs only when the resources between the two countries are fully specialized and efficiently allocated to produce a specific combination of food and clothing that results in a straight-line segment of the PPF with a slope of -1. Given the information, this specific condition is met only within the range of 20-30 units of food, implying that within this range, the trade-off between producing food and clothing is constant and equal, hence the slope of -1.

-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are