Assume for the united states that the opportunity cost of each airplane is 50 cars. which of these pairs of points could be on the united states' production possibilities frontier?

Respuesta :

(200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars) could be on the united states' production possibilities frontier.

The graph known as the Production Possibilities Frontier (PPF) illustrates all the possible output combinations of two goods that can be created using the resources and technology currently in use. The PPF effectively expresses the ideas of choice, tradeoffs, and scarcity.

The resources are available and continue to be constant, according to the basic assumptions of the production possibility curve. The technology used in the manufacturing process doesn't change. The technology and resources are effectively and completely used.

The trade-off between producing one good versus another is gauged by the production possibilities curve.

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