Answer to Question #227587 in Microeconomics for iikhdx

Question

. Draw a production possibility frontier showing the trade-off between the production of apples and the production of oranges

Answer 1

Diagrammatic Representation:

Assuming a hypothetical example:

From the above-shown diagram:

• Point A indicates 0 oranges and 140,000 apples
• Point B indicates 20,000 oranges and 120,000 apples
• Point C indicates 35,000 oranges and 85,000 apples
• Point D indicates 40,000 oranges and 0 apples
• Point E indicates inefficient resources
• Point F indicates the output that cannot be achieved with available resources