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Unformatted text preview: Schedule: The table above showing the varying units of X and Y goods produced is called a Production Possibility Schedule. It is a schedule in the sense that at any moment, if we consider the units of X (say 3) to be produced, then the maximum possible units of Y which can be produced (11) can also be known. It is not necessarily based on an empirical or any trial and error method. The relevant information is a result of certain economic hypothesis about production behavior. The schedule is based on certain important assumptions. These include the following : a. The total quantity of various resources and services available for production is fixed. b. All available resources must be fully utilized. c. Technical conditions and knowledge (methods of production) remain fixed; and, d. Only two goods X and Y are produced with these resources. Only two goods X and Y are produced with these resources....
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This note was uploaded on 12/28/2011 for the course MGMT 3303 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10