Business
Business, 16.03.2020 17:00, catwomn

A. Draw a production possibilities curve for a hypothetical economy producing capital and consumer goods.

b. Suppose a major technical breakthrough occurs in the capital goods industry and the new technology is widely adopted only in this industry. Draw the new production possibilities curve on the same set of axes as a.

c. Now assume that a technological advance occurs in consumer goods production, but not in capital goods production. Draw the new production possibilities curve on the same set of axes as a and b.

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