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ng.cengage.com C In Course: 2021FA-ECO-251-OL60G: Prin of Microeconomics MindTap - Cengage Lear CENGAGE MINDTAP Homework (Ch 03) 1. Specialization and production possibilities Suppose Germany produces

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ng.cengage.com C In Course: 2021FA-ECO-251-OL60G: Prin of Microeconomics MindTap - Cengage Lear CENGAGE MINDTAP Homework (Ch 03) 1. Specialization and production possibilities Suppose Germany produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars. The shape of Germany's production possibilities frontier (PPF) should reflect the fact that as Germany produces more trucks and fewer cars, the opportunity cost of producing each additional truck The following graphs show two possible PPFs for Germany's economy: a straight-line PPF (PPF1 ) and a bowed-out PPF (PPF2)

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