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Suppose Japan produces only camcorders and digital cameras. The resources that are used in the production of these two goods are not specializedthat is, the
Suppose Japan produces only camcorders and digital cameras. The resources that are used in the production of these two goods are not specializedthat is, the same set of resources is equally useful in producing both digital cameras and camcorders. Stated differently, how much of one good that has to be given up to get another good is always the same. The shape of Japan's production possibilities frontier (PPF) should reflect the fact that as Japan produces more digital cameras and fewer camcorders, the opportunity cost of producing each additional digital camer
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