PPC Homework - Homework 1 4 Inthegraphbelow, .IntheOldWest,thefrontierwasthe

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Homework 1 4. In the graph below, the point showing the maximum level of corn production is called the  production  possibilities frontier  or  PPF . A frontier is the boundary or dividing line between two regions. In the Old West, the frontier was the  dividing line between civilization and wilderness. In these graphs, the frontier divides points that are  attainable from ones that are unattainable. Corn production on these 20 acres will always be limited to a  maximum of 3,000 bushels as long as the weather, fertility of the soil, and production technology remain  the same. Changes in one of these factors may increase or decrease the maximum level of corn output,  shifting the frontier in or out. Assume that all other factors of production (the ability and effort of the farmer; type of seed, fertilizer, and  pest and weed control methods; tractors and harvesters; and so on) stay the same, but that the weather  for growing corn is much better than normal. The blue dot in the graph now shows the new location of the  production possibilities frontier.   With this new location for the frontier, 3,500 bushels of corn is:       A.   Attainable and inefficient     B.   Attainable and efficient     C.   Unattainable  
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This note was uploaded on 03/19/2011 for the course ECON 302 taught by Professor Wroee during the Spring '08 term at American River.

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PPC Homework - Homework 1 4 Inthegraphbelow, .IntheOldWest,thefrontierwasthe

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