An economy s production possibilities boundary is given by the mathematical expression 45 = A +...
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An economy's production possibilities boundary is given by the mathematical expression 45 = A + 2B, where A is the quantity of good A and B is the quantity of good B.
If all the resources in the economy were allocated to producing good A, what is the maximum level of production for this good? What is the maximum level of production for good B?
Production Possibilities Boundary
Production possibilities boundary is the limit or constraint of production of economy. This limit is because, the resources of economy can not produce beyond this limto when used till full capacity. This is the maximum potential limit of possible production of economy.
Answer and Explanation: 1
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If all resources in the economy were allocated to producing good A, then the zero units of good B would be produced. Representing this, equation of...
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Production Possibilities Curve: Definition & Examples
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Chapter 11 / Lesson 28
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Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.
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