Production Possibilities Curve. Consider a nation that produces baseball mitts and soccer balls. The following table shows the possible combinations of the two products.

a. Draw a production possibilities curve with mitts on the horizontal axis and balls on the vertical axis.

b. Suppose the technology for producing mitts improves, meaning that fewer resources are needed for each mitt. In contrast, the technology for producing soccer balls does not change. Draw a new production possibilities curve.

c. The opportunity cost of the first two million mitts is  ________________million soccer balls and the opportunity cost of the last two million mitts is  ________________ million soccer balls.

Transcribed Image Text:

Baseball mitts (millions) 0 2 4 6 8 Soccer balls (millions) 30 24 18 10 0