A small country produces only two goods,CDs and T-shirts.Given its limited resources,this country has the following production possibilities:
(A)Draw the production possibilities curve. (
B)Suppose this country improves its technology for producing CDs,but technology remains the same for the production of T-shirts.What happens to the production possibility curve? How does this change affect the opportunity cost of increasing T-shirt production?

Question

A small country produces only two goods,CDs and T-shirts.Given its limited resources,this country has the following production possibilities:   
(A)Draw the production possibilities curve. (
B)Suppose this country improves its technology for producing CDs,but technology remains the same for the production of T-shirts.What happens to the production possibility curve? How does this change affect the opportunity cost of increasing T-shirt production?

Quizplus · Accepted Answer

The Answer of A small country produces only two goods,CDs and T-shirts.Given its limited resources,this country has the following production possibilities:   
(A)Draw the production possibilities curve. (
B)Suppose this country improves its technology for producing CDs,but technology remains the same for the production of T-shirts.What happens to the production possibility curve? How does this change affect the opportunity cost of increasing T-shirt production?

A Small Country Produces Only Two Goods,CDs and T-Shirts