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1. Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much
- 1. Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop. a. Draw a Production Possibilities Frontier depicting this situation.
- b. Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent.
- c. Explain why the PPF that you have drawn has the shape that it does.
- d. Is it possible to use just the PPF to find the best allocation for the crops? Explain.
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
