1. Specialization and production possibilities Suppose Austria produces only air fryers and pressure cookers. The resources that are used in the production of these two goods are not specialized- that is, the same set of resources is equally effective at producing both pressure cookers and air fryers. The shape of Austria's production possibilities frontier (PPF) should reflect the fact that as Austria produces more pressure cookers and fewer air fryers, the opportunity cost of producing each additional pressure cooker The following graphs show two possible PPFs for Austria's economy: a straight-line PPF (PPF1 ) and a bowed-out PPF (PPF2). Graph 1 Graph 2 PPF, PPF AIR FRYERS AIR FRYERS PRESSURE COOKE PRESSURE COOKERS