Economy PPF - James PPF Slope=-3 Ann PPF Slope= Econ-1 251...

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mes can produce: s and sandwiches that connects the above two production possibility points n n can produce: and sandwiches that connects the above two production possibility points James’ PPF. Slope= -3 Ann’ PPF. Slope= -1 Salads 40 10 40 30 70 50 Sandwiches Economy PPF C(0,50) Econ 251 Fall 2009 Anca Cristea 27/08/2009 Graphical representation of the Production Possibility Frontier for Ann and James: James’ PPF: Ann’s PPF: Combine James and Ann’s production Economy-wide PPF The PPF for the Economy made up from James and Ann shows the limits to the production of these two goods, given the total resources (i.e., one hour of time) available to produce them. Why is the Economy PPF not a straight line? If Ann and James both make sandwiches total number of sandwiches produced in one hour is: 40 +30 = 70 => point A (0, 70) If Ann and James both make salads total number of salads produced in one hour is: 10 + 40 = 50 => point C (50, 0) But what if positive amounts of both goods get produced? How should
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This note was uploaded on 10/04/2011 for the course ECONOMICS 251 taught by Professor Kelly during the Spring '11 term at Purdue.

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Economy PPF - James PPF Slope=-3 Ann PPF Slope= Econ-1 251...

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