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production possibilities curve based question

Given is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts):

1243_Production possibilities curve.png

Illustrates these data graphically. Upon what particular assumptions is this production possibilities curve based?

 

E

Expert

Verified

Observe curve EDCBA.  The supposition is full employment, fixed supplies of resources, fixed technology and two goods.

 

377_Production possibilities curve-curve EDCBA.png

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