ECON 1900 Chapter Notes - Chapter 1: Andor Technology, Forklift, Marginal Cost
Document Summary
Chapter 1 exercise: the citizens of country a are able to produce only two products, x and y. The country has resources that are suitable for the production of x and other resources that are suitable for producing y only. Labour is the only resource used in both x and y. The following table indicates the daily production of both x and y based on the number of workers allocated to that product. Construct the production possibility curve for products x and y. Remember that there are only eight workers, so if the level of production of good x is 0 then all eight worker are in the production of good y so the first point is (0, If you move one worker out of the production of good y and into good x then you can produce 4 units of x and 150 units of y so the next point is (4, 150).
