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SCOOTERS 1. Specialization and production possibilities Suppose Austria produces only scooters and air fryers. The resources that are used in the production of these
SCOOTERS 1. Specialization and production possibilities Suppose Austria produces only scooters and air fryers. The resources that are used in the production of these two goods are specialized-that is, some resources are better suited for producing scooters than air fryers, whereas others are better suited for producing air fryers than scooters. The shape of Austria's production possibilities frontier (PPF) should reflect the fact that as Austria produces more air fryers and fewer scooters, the opportunity cost of producing each additional air fryer The following graphs show two possible PPFS for Austria's economy: a straight-line PPF (PPF) and a bowed-out PPF (PPF2). PPF 1 AIR FRYERS Graph 1 ? SCOOTERS PPF 2 AIR FRYERS Graph 2 ? AIR FRYERS AIR FRYERS Graph 1 Based on the previous description, the trade-off Austria faces between producing air fryers and scooters is best represented by Graph 2
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