Answer to Question #89026 in Microeconomics for Dineo Morokolo

Question

Discuss the underlying assumption of the drawn graph 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.