Draw a Production Possibilities Frontier Showing Increasing Opportunity Cost of Hammers

question 42

Essay

Draw a production possibilities frontier showing increasing opportunity cost of hammers in terms of horseshoes.
a. On the graph, identify the area of feasible outcomes and the area of infeasible outcomes.
b. On the graph, label a point that is efficient and a point that is inefficient.
c. On the graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to make both horseshoes and hammers, on this economy.
d. On a second graph, illustrate the effect of a new computerised assembly line in the production of hammers on this economy.

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Definitions:

Fuse Mammary Cell

A process involving the combination of mammary cells, potentially for scientific research, including cloning or production of pharmaceuticals.

Enucleate Egg Cell

An egg cell that has had its nucleus removed, used in certain reproductive technologies and research applications.

Transfer To Host

The process by which a parasite, pathogen, or other organism is passed from one host to another.

Enucleate Egg Cell

An egg cell that has had its nucleus removed, used in cloning and certain biotechnological applications to create an embryo by inserting a nucleus from a donor cell.