Question
Hello, Hope all is well. In Layman Terms, please help construct a production possibility frontier curve on a graph with R & D as y-axis
Hello, Hope all is well. In Layman Terms, please help construct a production possibility frontier curve on a graph with R & D as y-axis and components on X-Axis illustrating a no-trde equilibrium for a US automobile producer firm(Home firm). On a tangent now,, my amaeteur nderstanding of the no-trade equilibrium is quoted here." the PPF shows the combinations of components and R&D that can be produced by said firm with a given amount of labor and capital. in the absence of offshore/outsourcing the firm produces at A. I know A is the relative price and it using quantity Qc of components and Qr of R & D to produce at an indifference curve of Y 0 of the final good. I don't understand how you analyze indifference curves or utility, as it relates to gains from trade in a no trade equilibrium or the purpose of the demand curve. please help answer this question using your expert knowledge.
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