mai1261
mai1261
20.01.2021 • 
Business

Production Possibilities Curves 1. Examine the production possibilities schedule below.
Production Possibility
A
B
C
D
E

Cupboards
0
1
2
3
4

Tables
14
12
9
5
0

a) Calculate the opportunity cost for each addition cupboard being produced.

b) Use the production possibilities schedule to graph a production possibilities curve.

c) Mark a point F on the graph that indicates unemployed resources for the Pinetree Furniture Company.

d) Can the Pinetree Furniture Company produce 8 tables and 3 cupboards during the same year? Mark this production level as point G on the graph. Explain why this point is unattainable under present conditions. How might this production level be reached in the future?

e) Show the effects on the curve of an increase in the labour force resulting from a more liberal immigration policy.

f) Identify and explain the economic law which is responsible for the production possibility curve having a concave (bowed out) curvature.


Production Possibilities Curves

1. Examine the production possibilities schedule below. Productio

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