Question
An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units.
An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows:
Labor Input to Good 1 | Output of Good 1 | Labor Input to Good 2 | Output of Good 2 |
0 | 0 | 0 | 0 |
10 | 25 | 10 | 40 |
20 | 38 | 20 | 53 |
30 | 49 | 30 | 62 |
40 | 58 | 40 | 69 |
50 | 66 | 50 | 76 |
60 | 74 | 60 | 82 |
70 | 81 | 70 | 87 |
80 | 87 | 80 | 91 |
90 | 94 | 90 | 96 |
100 | 100 | 100 | 100 |
Using the multipoint curve drawing tool, graph
theproductionpossibilityfrontier
by plotting all eleven control points on the graph to the right.Carefully follow the instructions above and only draw the required object.
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