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ppc2 - (c Explain(verbally and graphically how each of the...

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Additional Problem 2: PPCs In Mexico each unit of a resource can produce either one professional computer (with business and scientific applications) or three computer-game systems. Mexico has 100,000 units of this resource. (a) Draw Mexico’s production possibilities curve for these two products. (b) What is the opportunity cost of one professional computer? One computer-game system? Is the production of professional computers subject to the law of increasing costs? Why or Why not?
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Unformatted text preview: (c) Explain (verbally and graphically) how each of the following events will effect (or not effect) Mexico’s production possibility curve. (1) a previously idle plant that makes only computers is back in operation. (2) A new technique is discovered for producing computer-games with less materials. (3) Because of a declining birthrate, the country’s working-age population shrinks. (4) Average educational attainment of the population increases by one year....
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