The chart below represents the production possibilities for a company that produces books and magazines.

Make a labeled graph representing the company's combination of choices for these two products.

Using the letter 'U' indicate on the graph unattainable combinations.

Using the letter 'A', indicate on the graph the attainable but inefficient.

Using the letter 'F' indicate the combinations that are both attainable and efficient.

What could happen that would cause the PPC to move outward? Explain, providing an example.

Production Possibility Curve

Magazines

Books

0

360000

125000

250000

156000

180000

225000

125000

300000

0