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Below is the production possibilities frontier for India. It shows that India is able to produce either 30 batches of apples or 50 batches of
Below is the production possibilities frontier for India. It shows that India is able to produce either 30 batches of apples or 50 batches of pumpkins using all of its available resources. Also suppose that, India decides to produce at point A : 20 batches of pumpkins and 18 batches of apples. If India engages in international trade and trades 15 batches of pumpkins for 15 batches of apples with another country, it will be able to consume outside of its production possibilities frontier. How many batches of apples will the country have at the end of the exchange? Production Possibilities Frontier Production Possibilities Frontier with gains from trade
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