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Draw and explain a production productivity frontier for an economy that produces yam and rice?
African Fashion
Jan 29
Draw and explain a production productivity frontier for an economy that produces yam and rice?
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Jan 29
To draw and explain a production productivity frontier for an economy that produces yam and rice, we need to understand the concept of a production possibility frontier (PPF). A PPF represents the maximum output combination of two goods that an economy can produce given its resources and technology.
Let's assume that the economy only produces yam and rice, and it has a fixed amount of land, labor, and capital. The PPF shows the different combinations of yam and rice that can be produced efficiently.
On the graph, we will have yam production on the x-axis and rice production on the y-axis. The PPF will be a curve that represents the trade-off between producing yam and rice. It shows the maximum amount of one good that can be produced given the production level of the other good.
The PPF will have a negative slope because resources are not equally efficient in producing both goods. For example, if the economy is specialized in producing yam, it will have to sacrifice some yam production to produce more rice, and vice versa.
The shape of the PPF will depend on the resources and technology available. If the economy has a comparative advantage in producing yam, the PPF will be more bowed out towards the yam axis. This means that the opportunity cost of producing rice is relatively higher compared to yam.
Conversely, if the economy has a comparative advantage in producing rice, the PPF will be more bowed out towards the rice axis. This means that the opportunity cost of producing yam is relatively higher compared to rice.
The points on the PPF represent efficient production combinations, where resources are fully utilized. Points inside the PPF represent inefficient production, while points outside the PPF are unattainable given the available resources and technology.
In summary, the production productivity frontier for an economy that produces yam and rice is a curve that represents the maximum output combinations of the two goods. Its shape and position depend on the comparative advantage of the economy in producing yam or rice.
Let's assume that the economy only produces yam and rice, and it has a fixed amount of land, labor, and capital. The PPF shows the different combinations of yam and rice that can be produced efficiently.
On the graph, we will have yam production on the x-axis and rice production on the y-axis. The PPF will be a curve that represents the trade-off between producing yam and rice. It shows the maximum amount of one good that can be produced given the production level of the other good.
The PPF will have a negative slope because resources are not equally efficient in producing both goods. For example, if the economy is specialized in producing yam, it will have to sacrifice some yam production to produce more rice, and vice versa.
The shape of the PPF will depend on the resources and technology available. If the economy has a comparative advantage in producing yam, the PPF will be more bowed out towards the yam axis. This means that the opportunity cost of producing rice is relatively higher compared to yam.
Conversely, if the economy has a comparative advantage in producing rice, the PPF will be more bowed out towards the rice axis. This means that the opportunity cost of producing yam is relatively higher compared to rice.
The points on the PPF represent efficient production combinations, where resources are fully utilized. Points inside the PPF represent inefficient production, while points outside the PPF are unattainable given the available resources and technology.
In summary, the production productivity frontier for an economy that produces yam and rice is a curve that represents the maximum output combinations of the two goods. Its shape and position depend on the comparative advantage of the economy in producing yam or rice.
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