Suppose that two people, Michelle and James each live alone inan isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportionssome resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points.) If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per year. If he devotes all his resources to raising chickens, he can raise 40 chickens per year.(If he apportions some resources to each, then he can produce anylinear combination of chickens and potatoes that lies between those extreme points.
How would you extend the above narrative to businesses, societyas a whole or nations? Explain.
Suppose that two people, Michelle and James each live alone inan isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportionssome resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points.) If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per year. If he devotes all his resources to raising chickens, he can raise 40 chickens per year.(If he apportions some resources to each, then he can produce anylinear combination of chickens and potatoes that lies between those extreme points.
How would you extend the above narrative to businesses, societyas a whole or nations? Explain.
