Draw a production possibilities frontier (PPF) for Good A and Good B.Suppose that these goods are subject to increasing relative costs in production,and be sure that your graph reflects this fact.
Now suppose that a new and innovative technology enhances the production of Good A but not Good B.Illustrate how this new innovation changes the production possibilities frontier (PPF).

Question

Quizplus · Accepted Answer

The Answer of Draw a production possibilities frontier (PPF) for Good A and Good B.Suppose that these goods are subject to increasing relative costs in production,and be sure that your graph reflects this fact.
Now suppose that a new and innovative technology enhances the production of Good A but not Good B.Illustrate how this new innovation changes the production possibilities frontier (PPF).

Draw a Production Possibilities Frontier (PPF) for Good a and Good