Why ppf before war is different from the ppf after war

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Before the war, Iraq had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Iraq’s PPF before and after the war, assuming that the only two goods produced are oil and food. Further assume that setting the oil wells on fire and the war did not affect Iraq’s ability to produce food. Explain why the PPF before the war is different from the PPF after the war.

Reference no: EM13737910

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