A farm grows wheat and produces pork. The mar- ginal cost of producing each of these products
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A farm grows wheat and produces pork. The mar- ginal cost of producing each of these products increases as more of it is produced.
a. Make a graph that illustrates the farm's PPF.
b. The farm adopts a new technology that allows it to use fewer resources to fatten pigs. On your graph, sketch the impact of the new technology on the farm's PPF
c. With the farm using the new technology in part (b), has the opportunity cost of producing a tonne of wheat changed? Explain and illustrate your answer.
d. Is the farm more efficient with the new technol- ogy than it was with the old one? Why?
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Related Book For
Microeconomics Canada In The Global Environment
ISBN: 9781556520617
11th Edition
Authors: Michael Parkin, Robin Bade
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