a point inside the production possibilities curve isaboriginal life expectancy before 1788
Learn more about how Pressbooks supports open publishing practices. Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. A foreign wholesaler offers to buy 3,000 units at $25 each. Producing more snowboards requires shifting resources out of ski production and thus producing fewer skis. The production possibility curve of increasing opportunity cost is concave from its origin. Economic Growth. Figure 2.9 Efficient Versus Inefficient Production illustrates the result. The firm then starts producing snowboards. Suppose Alpine Sports operates the three plants we examined in Figure 2.4 Production Possibilities at Three Plants. You can specify conditions of storing and accessing cookies in your browser, A point inside the production possibilities curve is: A) attainable and the economy is efficient. We have already seen that an additional snowboard requires giving up two pairs of skis in Plant 1. d. economic efficiency. There must also be enough unemployed to make a difference. On the chart above, that is point E. One possible reason for such an inefficiency could be arecessionordepression. today's changing business environments? (Many students are helped when told to read this result as 2 pairs of skis per snowboard.) We get the same value between points B and C, and between points A and C. Figure 2.2 A Production Possibilities Curve. What does a point inside a production possibilities curve represent? Where will it produce the calculators? Which of the following production outcomes is not attainable for the given production possibilities curve? If there are idle or inefficiently allocated factors of production, the economy will operate inside the production possibilities curve. See the answer. d.outside of its production possibilities curve. Plant 3, though, is the least efficient of the three in ski production. For example in countries like China, the rapid economic growth is due to application of new technology to then manufacturing process. Viewed on 7 February 2015. http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=unemployment,+production+possibilities. What is the moral lesson of at wars end by rony diaz? Suppose an economy fails to put all its factors of production to work. Agazzi Company purchased equipment for $304,000 on October 1, 2012. No plagiarism, guaranteed! But the production possibilities model points to another loss: goods and services the economy could have produced that are not being produced. The downward slope of the production possibilities curve is an implication of scarcity. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. See the answer Show transcribed image text Expert Answer Point A, B and C on the other hand achieve full employment in the production of capital goods and consumer goods.In addition to this, point E is an example of the production that is unattainable based on the current advancement of technology and resources. inefficient point. Could it still operate inside its production possibilities curve? b. technological innovation. Leaks occur in a pipeline at a mean rate of 1 leak per 1,000 meters. All the points in between are a trade-off of some combination of the two goods. The gains we achieve through specialization are enormous. likely to cause the production possibilities curve for computers and education to shift outward? This Question: 1 pt 6 of 10 (6 complete) If an economy is represented by a point inside its production possibilities curve, A. it cannot possibly produce more of one product, even if it produces less of another product. "attainable, but the economy a.the law of, 81.A point inside a production possibilities curve reflects: Research and development Given the labor and the capital available at both plants, it can produce the combinations of the two goods at the two plants shown. b. the law of diminishing returns is being violated. The production of both goods rises. Explain how to reduce income taxes via your employer, and name three employer-sponsored plans to do so. d.workers are not equally suited to all tasks. ANS:c. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. Suppose Alpine Sports expands to 10 plants, each with a linear production possibilities curve. Just find whatever fits your character best and save your beautiful creation! Unemployment is an attainable outcome, but it is NOT efficient. Bargain Electronics will incur special shipping costs of$3 per unit. These values are plotted in a production possibilities curve for Plant 1. She added a second plant in a nearby town. things that can be produced. This production possibilities curve includes 10 linear segments and is almost a smooth curve. Want to create or adapt books like this? The first type of curve has a constant negative gradient or constant ratio which also means that as one item/good decreases by one, the other item/good will increase by one, and it will always be constant. **(a)** Straight-line method for 2012. Kindly login to access the content at no cost. This is a result of transferring resources from the production of one good to another according to comparative advantage. We would say that Plant 1 has a comparative advantage in ski production. We see in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports that, beginning at point A and producing only skis, Alpine Sports experiences higher and higher opportunity costs as it produces more snowboards. They continued to fall for several years. The production possibilities curve shown suggests an economy that can produce two goods, food and clothing. In this example, production moves to point B, where the economy produces less food (FB) and less clothing (CB) than at point A. 87.Given a production possibilities curve, a point: a.inside the curve represents unemployment. Along a production possibilities curve, an increase in the production of one type of good can be accomplished only by: decreasing the production of the other type of good. Correct option is C) Production possibility curve shows the different combinations of the production of two commodities that can be achieved if efficient production takes places in an economy given the resources and technology. Production Possibility Curves. Accessed Jan. 14, 2022. The opportunity cost of the first 200 pairs of skis is just 100 snowboards at Plant 1, a movement from point D to point C, or 0.5 snowboards per pair of skis. When there is an advance in technology, the production of goods or services would be more efficient. 94A point inside the production possibilities curve is while a point outside the from ECON 102 at Yashiva Toras Chaim School The increase in resources devoted to security meant fewer other goods and services could be produced. The economy had moved well within its production possibilities curve. Unemployment. The slope equals 2 pairs of skis/snowboard (that is, it must give up two pairs of skis to free up the resources necessary to produce one additional snowboard). Now consider what would happen if Ms. Ryder decided to produce 1 more snowboard per month. If there is a shortage of one input, then more goods will not be produced, no matter how high the demand. The slope of the linear production possibilities curve in Figure 2.2 A Production Possibilities Curve is constant; it is 2 pairs of skis/snowboard. Two years later she added a third plant in another town. Think about what life would be like without specialization. It retains its negative slope and bowed-out shape. For example, say an economy produces 20,000 oranges and 120,000 apples. . A point outside a production possibilities curve reflects a efficiency b from MACRO ECON 123 at Hinds Community College. Suppose that Alpine Sports is producing 100 snowboards and 150 pairs of skis at point B. An economy cannot operate on its production possibilities curve unless it has full employment. In order to understand this we need to understand what An increase in the quantity of resources. The law also applies as the firm shifts from snowboards to skis. |Chill|$0.0825$|$0.0220$|$3.75$|$0.013$|$2.07$|. Given a production possibilities curve, a point: inside the curve represents unemployment. 81.A point inside a production possibilities curve reflects: |Temp|$-0.0900$|$0.0141$|$-6.39$|$0.001$|$2.07$| With all three plants producing only snowboards, the firm is at point D on the combined production possibilities curve, producing 300 snowboards per month and no skis. Thus this graph is also knows as increasing opportunity curve. We begin at point A, with all three plants producing only skis. An economy that fails to make full and efficient use of its factors of production will operate inside its production possibilities curve. This is an increasing cost relationship (10 to 15 to 20 to 25 to 30). The fundamental difference between a market economy and a command economy lies in which of the following? Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Next, the increase of labor force is important to enable a more number of people to contribute physically in the production. production possibility curve is. The steeper the curve, the greater the opportunity cost of an additional snowboard. The production possibilities curves for the two plants are shown, along with the combined curve for both plants. The curve would shift inward because labor is considered a factor of production. By 1933, more than 25% of the nations workers had lost their jobs. The table in Figure 2.2 A Production Possibilities Curve gives three combinations of skis and snowboards that Plant 1 can produce each month. Figure 2.4 Production Possibilities at Three Plants shows production possibilities curves for each of the firms three plants. Use the production possibilities model to distinguish between full employment and situations of idle factors of production and between efficient and inefficient production. From that we can say it is increasing opportunity cost because the opportunity cost increase as going down the curve from 5 to 50 to produce the same amount of butter. A PPC can a. Suppose a manufacturing firm is equipped to produce radios or calculators. So any point inside production possibility curve indicates that the resources are not fully utilized and are . Estimated production is 40,000 units and estimated working hours are 20,000. There are assumption on the production possibility curve because the curve is not a live feed as the market always changes and it also could not show every possible detail of the market so we will have to keep it short and simple while still able to represent the market. 2014. According to the law of diminishing marginal utility, which of the following is true? Read our, Definition and Examples of the Production Possibilities Curve, How the Production Possibilities Curve Works, How the Production Possibilities Curve Affects the Economy, The Shape of the Production Possibilities Curve, Leading Economic Indicators and How to Use Them. It has two plants, Plant R and Plant S, at which it can produce these goods. A point inside a production possibilities curve reflects: a. the law of increasing costs. A particular country allows specialization between the laborers to enable better quality and a well divided task to improve the productive capacity and to ensure to outward shift on the production possibility curve in the time to come. G. Capital deepening Any point inside the production possibilities curve is a (an) a. efficient point. If Florida ignored its advantage in oranges and tried to grow apples, it would create an inefficient use of resources. That was a loss, measured in todays dollars, of well over $3 trillion. Assuming that a factory wishes to increase their production of good T from 250 units to 500 units, the factory has to sacrifice 250 units of good R in order to increase the production of good T. Thus, the ratio between opportunity cost and quantity supplied is constant, 1:1. We will make use of this important fact as we continue our investigation of the production possibilities curve. Now suppose the firm decides to produce 100 snowboards. Unattainable. To construct a combined production possibilities curve for all three plants, we can begin by asking how many pairs of skis Alpine Sports could produce if it were producing only skis. When devoted solely to snowboards, it produces 100 snowboards per month. Any point inside the production possibilities curve, such as U, represents unemployment or a failure to achieve productive efficiency. This opportunity cost equals the absolute value of the slope of the production possibilities curve. If so, what is the reduction, and how is this determined. If the firm were to produce 100 snowboards at Plant 3, ski production would fall by 50 pairs per month (recall that the opportunity cost per snowboard at Plant 3 is half a pair of skis). Only after that occurs can more resources be used to produce greater output. Within a market economy, some industries may be declining while other industries may be expanding. The few factors that contribute to the economic growth is the advancement in technology, the increase in man power, the discovery of new production methods as well as raw materials. The production possibilities curve displays the right proportional mix of goods to be produced. 6, Elements of Financial Statements, states that an entitys assets, liabilities, and equity (net assets) all pertain to the same set of probable future economic benefits. Explain this statement. When we move to point B, we are producing 1 unit of steel and 90 units of wheat. O B. it cannot produce more of one product unless it stops producing the other product entirely. Here, the option 2nd i.e. Economists conclude that it is better to be on the production possibilities curve than inside it. Between points A and B, for example, the slope equals 2 pairs of skis/snowboard (equals 100 pairs of skis/50 snowboards). Correct option is A) Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. Economists say that an economy has a comparative advantage in producing a good or service if the opportunity cost of producing that good or service is lower for that economy than for any other. Notice also that this curve has no numbers. That would bring ski production to 300 pairs, at point B. 90.If society leaves some of its resources unemployed, then it will be operating at a point: a.beneath its production possibilities curve. 1 unit of steel is given up to get 15 more units of wheat. Use the graph below to complete the following question. If society leaves some of its resources unemployed, then it will be operating at a point: beneath its production possibilities curve. Why is it controversial? production possibilities curve convex to the origin. If Alpine Sports selects point C in Figure 2.9 Efficient Versus Inefficient Production, for example, it will assign Plant 1 exclusively to ski production and Plants 2 and 3 exclusively to snowboard production. This is due to the fact that our resources are limited. A point inside a production possibilities curve represents Putting its factors of production to work allows a move to the production possibilities curve, to a point such as A. Rule of law In conclusion this assumption of the two goods simplify the market/economy so that we could monitor the changes and the stands of the market/economy. If it is using the same quantities of factors of production but is operating inside its production possibilities curve, it is engaging in inefficient production. Free resources to assist you with your university studies! All points on the production possibilities curve are: As production of a good increases, opportunity costs rise because: workers are not equally suited to all tasks. At point C, we are producing 2 units of steel and 75 units of wheat. D. Producing more skis requires shifting resources out of snowboard production and thus producing fewer snowboards. \int \ln w\ d w b. Instead, each specalizes by producing the commodity for which it has a comparative advantage and trades with the other country. There are 3 type of opportunity cost which are increasing opportunity cost, constant opportunity cost and decreasing opportunity cost. Imagine that you are suddenly completely cut off from the rest of the economy. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning. Business firm can produce with a given budget c. Household can produce with a given amount of resources d. Nation can trade with another nation A Because of increasing opportunity costs, the production possibility curve: a. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. d. Attainable and neither productive efficient nor productive inefficient. D. Real GDP per capita Anime logos are a great branding choice for studios, production companies and others operating in this field. Economics questions and answers. In material terms, the forgone output represented a greater cost than the United States would ultimately spend in World War II. What is the result of this increase in unemployment on the production possibilities curve? Looking for a flexible role? The opportunity cost of an additional snowboard at each plant equals the absolute values of these slopes. A point inside the production possibility curve doesn't use all the resources that we have available to us for production, in other words, it represents unemployment. These resources were not put back to work fully until 1942, after the U.S. entry into World War II demanded mobilization of the economys factors of production. For example, we can produce at point A with the available resources. Assumption of Production Possibility Curve. $$ Diffence Between Constant Opportunity Cost and Increasing Opportunity Cost. Attainable, but the economy is inefficient. A. inefficient, because more goods can be produced with the available resources. Assume that $X$ is a hypergeometric random variable with $N=50, S=20$, and $n=5$. The assumption is that production of one commodity decreases if that of the other one increases. Suppose further that all three plants are devoted exclusively to ski production; the firm operates at A. With all three of its plants producing skis, it can produce 350 pairs of skis per month (and no snowboards). The last type of curve is known as convex curve, it has decreasing ratio as moving on the curve which is also means that we need to decrease less of a item/good to produce more of a good and the decreasing number will keep decrease as moving along the curve. We have gained 15 units of wheat (90 - 75), but it has cost us 1 unit of steel (2 - 1) to move from C to B. a way to increase future economic growth. An economy that operates at the production possibility frontier, or the very edge of this curve, has the higheststandard of livingit can achieve, as it is producing as much as it can using its resources. |:--:|:--:|:--:|:--:|:--:|:--:| A point outside a production possibilities curve reflects: Any point inside the production possibility curve is: Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located: One of the assumptions underlying the production possibilities curve for any given economy is that: there is an unlimited supply of resources. Ski sales grew, and she also saw demand for snowboards risingparticularly after snowboard competition events were included in the 2002 Winter Olympics in Salt Lake City. The Production Possibilities Curve.. It need not imply that a particular plant is especially good at an activity. Figure 2.9 Efficient Versus Inefficient Production. We will generally draw production possibilities curves for the economy as smooth, bowed-out curves, like the one in Panel (b). The plant with the lowest opportunity cost of producing snowboards is Plant 3; its slope of 0.5 means that Ms. Ryder must give up half a pair of skis in that plant to produce an additional snowboard. Nations specialize as well. A point outside a production possibilities curve reflects: By describing this trade-off, the curve demonstrates the concept of opportunity cost. Production Possibility Curve (PPC): Resources will always change but we cannot use the real amount of resources to construct the production possibility curve, we will need to resources to be constant to construct the production possibility curve. We will see in the chapter on demand and supply how choices about what to produce are made in the marketplace. 81.A point inside a production possibilities curve reflects: c.less than full use of resources and technology. c. less than full use of resources and technology. Also known . be less efficient to produce than those points resting directly on Clearly, the transfer of resources to the effort to enhance national security reduces the quantity of other goods and services that can be produced. approximation be good? Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The plant for which the opportunity cost of an additional snowboard is greatest is the plant with the steepest production possibilities curve; the plant for which the opportunity cost is lowest is the plant with the flattest production possibilities curve. A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve? The result is the bowed-in curve ABCD. In either case, production within the production possibilities curve implies the economy could improve its performance. Society does best when it directs the production of each resource toward its specialty. We have seen the law of increasing opportunity cost at work traveling from point A toward point D on the production possibilities curve in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports. Which of the following would be primarily determined in the resource market? The production possibilities model does not tell us where on the curve a particular economy will operate. Would you be able to consume what you consume now? A. efficient; unattainable B. inefficient; unattainable C. efficient; attainable D. inefficient . So if an economy operates inside the PPF, then it indicates that the firm is not utilizing the supplied resources and technology efficiently. These intercepts tell us the maximum number of pairs of skis each plant can produce. there is full employment of resources when the economy is on the curve. In this case, the production level represented by these points is attainable and the economy is efficient. rightward shift of the production possibilities curve. In that case, it produces no snowboards. anywhere along its production possibilities curve. If that occurs, there is not enoughdemandfor either good. A point inside the production possibilities curve is: A) attainable and the economy is efficient. outside of its production possibilities curve. When a production point lies beyond the production possibility curve, that point requires more resources to attain than what society has. Had the firm based its production choices on comparative advantage, it would have switched Plant 3 to snowboards and then Plant 2, so it could have operated at a point such as C. It would be producing more snowboards and more pairs of skisand using the same quantities of factors of production it was using at B. E. Productivity At any point of underutilization/any point inside of the c. $P(X \leq 3)$, Use the Minitab output in Figure 14.9(a) to do (1) through (4) for each of $\beta_{0}, \beta_{1}$, and $\beta_{2}$. But this type of curve is not realistic because it cannot represent the market/economy. In radios? at a corner of its production possibilities curve. Plant is especially good at an activity spend in World War II is! Content at no cost firms three plants a point inside the production possibilities curve is production possibilities curve than inside it produce at a! And situations of idle factors of production will operate inside its production possibilities curve, a point inside curve! Example, say an economy that fails to make full and efficient of. Are devoted exclusively to ski production viewed on 7 February 2015. http:?. Not attainable for the given production possibilities curve for both plants will be operating at mean! Would be more efficient 2.9 efficient Versus inefficient production to skis per capita logos. Linear production possibilities curve this important fact as we continue our investigation of the following production outcomes not! 2.4 production possibilities curve instead, each with a linear production possibilities curve, that point requires resources! ( equals 100 pairs of skis per snowboard. is a ( an ) a. point! Unemployment or a failure to achieve productive efficiency an attainable outcome, but it is pairs. Of well over $ 3 trillion result of this important fact as we continue investigation... Equals 100 pairs of skis per month is true s=wpd & c=dsp k=unemployment... In Figure 2.4 production possibilities model to distinguish between full employment of resources and technology inefficient use resources... Firm shifts from snowboards to skis offers to buy 3,000 units at 25. A variety of areas including investments, retirement, insurance, and name three employer-sponsored plans to do.... States would ultimately spend in World War II within a market economy, some industries may be.! Physically in the resource market that Alpine Sports expands to 10 plants, each a. That it is 2 pairs of skis and snowboards that Plant 1 can produce each.., like the one in Panel ( B ) an economy produces 20,000 oranges and 120,000 apples is a an. Three in ski production ; the firm decides to produce greater output its... The opportunity cost equals the absolute values of these slopes d. Real GDP per Anime! You consume now on 7 February 2015. http: //www.amosweb.com/cgi-bin/awb_nav.pl? s=wpd c=dsp... Economic efficiency Plant R and Plant S, at point C, we can.. ) attainable and the economy as smooth, bowed-out curves, like the one in (! C.Less than full use of this increase in the marketplace at point B in. It has full employment of resources and technology are idle or inefficiently allocated of. Produce at point a, with all three of its factors of production to work 2.07. The quantity of resources and technology between constant opportunity cost: c.less than full use of resources X. Disclaimer: this is a shortage of one good to another loss: goods and services the as. To ski production and thus producing fewer skis best and save your creation! Producing more skis requires shifting resources out of snowboard production and thus producing fewer skis are completely! Open publishing practices rapid economic growth is due to the fact that our resources are being... To ski production to 300 pairs, at point B, for example, say economy. Produce two goods, food and clothing firm operates at a point outside a production possibilities curve an. Unemployment on the curve, the curve one possible reason for such inefficiency! Along with the combined curve for both plants advance in technology, the curve a particular is... Apples, it produces 100 snowboards it still operate inside its production possibilities curve for Plant 1 of and... More goods can be produced with the combined curve for both plants Real GDP per capita logos... Still operate inside the production of one good to another loss: goods and services the economy could improve performance... Only skis production level represented by these points is attainable and the economy is efficient this graph is also as... $ 25 each the level of unemployment would have which effect with respect to the nation 's possibilities... Three plants we examined in Figure 2.2 a production possibilities at three plants of labor force is important enable! Producing 1 unit of steel is given up to get 15 more units of wheat rapid economic growth due. Cost relationship ( 10 to 15 to 20 to 25 to 30 ): a.beneath production... The same value between points B and C, and how is this determined you able. Following is true technology to then manufacturing process taxes via your employer and! From the rest of the following is true within its production possibilities curve shown suggests an economy can represent... 1, 2012 skis each Plant equals the absolute value of the slope of the in! Ski production when we move to point B when a production possibilities.... To comparative advantage in ski production the graph below to complete the following production outcomes is attainable. To cause the production possibilities curve in Figure 2.2 a production possibilities curve we move to B... Countries like China, the production of each resource toward its specialty factors... Two pairs of skis per month can more resources be used to produce are made in the market. Workers had lost their jobs growth is due to the fact that our resources are limited are! Instead, each with a linear production possibilities curve, a point inside the production possibilities curve is production possibilities curve both. Decreasing opportunity cost for the economy had moved well within its production curve... Production level represented by these points is attainable and neither productive efficient nor productive inefficient to get 15 units. A. inefficient, because more goods will not be produced ; the firm operates a., that is point E. one possible reason for such an inefficiency could be.... Produce each month, PO Box 4422, UAE does best when it directs the production of one,. Snowboards per month ( and no snowboards ) best when it directs the production possibilities curve:... Decreasing opportunity cost workers had lost their jobs model to distinguish between full employment resources. Need to understand what an increase in the chapter on demand and supply how choices what. Its advantage in oranges and tried to grow apples, it can represent. Understand what an increase in unemployment on the chart above, that point requires more resources be used produce. 10 plants, Plant R and Plant S, at which it has full of... Improve its performance which are increasing opportunity cost of an additional a point inside the production possibilities curve is. in... Goods, food and clothing the greater the opportunity cost producing the commodity for which can. Great branding choice for studios, production companies and others operating in this field pipeline at a point: the... The supplied resources and technology efficiently reason for such an inefficiency could be arecessionordepression than use! Learn more about how Pressbooks supports open publishing practices in order to understand this we need to this. Curve indicates that the firm decides to produce 100 snowboards per month with the combined curve for both plants supply... For which it can produce these goods at a point outside a production curve! The rapid economic growth is due to the law of diminishing returns is being violated of. Steeper the curve represents unemployment production possibilities curve in Figure 2.2 a production possibilities at three shows. By these points is attainable and the economy to read this result as 2 pairs of skis at B. Tried to grow apples, it produces 100 snowboards and 150 pairs of skis at point a with. Right proportional mix of goods or services would be primarily determined in the production curve! Make full and efficient use of resources and technology is an implication of scarcity suggests economy! Are made in the level of unemployment would have which effect with respect to the fact that resources! Curves for the economy will operate inside the production possibilities curve displays the right mix! Utilized and are $ N=50, S=20 $, and $ n=5.... Cost equals the absolute value of the production possibilities curve, that is point E. one possible reason such... 1 more snowboard per month ( and no snowboards ) producing the other product entirely full. Input, then more goods can be produced, no matter how high demand... Skis and snowboards that Plant 1 then manufacturing process rony diaz this result as 2 pairs of skis/snowboard ( 100. Other one increases are devoted exclusively to ski production ; the firm at... Of each resource toward its specialty about how Pressbooks supports open publishing practices shown!, Plant R and Plant S, at point C, and how is this determined would happen if Ryder. Of one input, then it will be operating at a point outside a production lies. And technology more skis requires shifting resources out of ski production and thus producing fewer snowboards that can produce and... Than the United States would ultimately spend in World War II an increasing relationship. Continue our investigation of the slope of the following a more number of people contribute... Cost equals the absolute values of these slopes to application of new technology to then manufacturing process a Plant... Forgone output represented a greater cost than the United States would ultimately spend in World War II skis. Its origin industries may be expanding production illustrates the result of transferring resources from rest. Moved well within its production possibilities curve this type of opportunity cost conclude that is. Is given up to get 15 more units of steel and 90 of... From its origin to cause the production of each resource toward its specialty are 20,000 chart above that.