Answer to Question #88988 in Microeconomics for ricard

Question

2 Discuss the underlying assumption of the shape of the above drawn diagram and comment on how
likely this could be true with respect the above scenario.

Answer 1

PPF shows possible combinations of earnings potential between the two careers, and is depicted as a line. That is likely to be true as a result of the flexible employment conditions which give the possibility to combine the two careers without any additional costs or changes in productivity.