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Business, 28.02.2020 20:16 keasiabradley

Specialization and production possibilities Suppose Ireland 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 Ireland's production possibilities frontier (PPF) should reflect the fact that as Ireland produces more trucks and fewer cars, the opportunity cost of producing each additional truckincreases The following graphs show two possible PPFs for Ireland's economy: a straight-line PPF (PPFi) and a bowed-out PPF (PPF2)

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Specialization and production possibilities Suppose Ireland produces only cars and trucks. The resou...
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