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April 11, 2024

CA Production Possibilities Frontier Questions

Draw a production possibilities frontier showing increasing opportunity cost of muffins in terms of cookies.

On your graph, please label the following points.

A: A point that is possible and efficient

B: A point that is possible but inefficient

C: A point that is not currently possible

D: On the graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to make both horseshoes and hammers, on this economy.

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