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In Mexico each unit of resource can produce either one professional computer (with business and scientific applications) or three games. Mexico has 30 units of
In Mexico each unit of resource can produce either one professional computer (with business and scientific applications) or three games. Mexico has 30 units of this resource.
a) Draw Mexico's production possibilities curve.
b) What is the opportunity cost of one professional computer in terms of games?
c) Is the production of professional computers subject to constant or increasing costs?
d) Which of the two goods being produced is considered a capital good?
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