Its slope at any point is known as the marginal rate of transformation, making it useful in determining comparative advantage. Trivial cases of it occur when there are insufficient resources, creating a horizontal or vertical line. Points inside this
Its slope at any point is known as the marginal rate of transformation, making it useful in determining comparative advantage. Trivial cases of it occur when there are insufficient resources, creating a horizontal or vertical line. Points inside this curve may result from unemployment, and points beyond it cannot exist if technology or factors of production are unchanged. It is linear when resources can be used to produce (*) both goods equally, but usually it curves in towards the axes. An example of it concerns the choice between guns and butter. For 10 points, name this curve, which plots combinations of outputs of two goods to achieve maximum efficiency.
Its slope at any point is known as the marginal rate of transformation, making it useful in determining comparative advantage.
{p}roduction {p}ossibilities {f}rontier