Draw its ppf assuming constant opportunity costs

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Reference no: EM13736614

Suppose an economy produces three goods (rice, bananas, and strawberries).

Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.

The PPF with a constant opportunity cost will be a downward sloping straight line.

The PPF with increasing opportunity costs will look like a concave shaped curve bowed outwards.

With three goods, the PPF is a three dimensional figure with three axes, R, B and S.

How do you draw one graph for three products with constant opportunity; then a second graph for the three products with increasing opportunity?

Reference no: EM13736614

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