Answer to Question #267556 in Microeconomics for mofo

Question

Draw a production possibility frontier with paddy on the horizontal axis and

maize on the vertical axis illustrating these options, showing points A–F.

Answer 1

PRODUCTION POSSIBILITY CURVE

The amount of maize is assessed on the x-axis, while paddy is evaluated on the y-axis.

               As can be seen, for this society to grow maize, part of the inputs it now uses to create paddy should be given up (point F). If the sector begins generating extra paddy (points E, D, C, and B), it will have to move funds away from maize production, resulting in less maize being produced than at point B.

               Furthermore, by shifting operations from site F to point E, the sector should reduce maize productivity by a modest proportion concerning Paddy productivity. However, if the industry changes from point E to point D, maize output would be significantly curtailed, whereas Paddy output will grow somewhat.