Say that a technological change doubles an economys ability to produce good X and triples the economys
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Say that a technological change doubles an economy’s ability to produce good X and triples the economy’s ability to produce good Y. As a result,
a. the economy will tend to produce less X and more Y than before.
b. the opportunity cost of producing units of Y in terms of X forgone will tend to fall.
c. the production possibilities curve will shift out further along the X-axis than along the Y-axis.
d. both b and c would be true.
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