Question

10. Shifts in production possibilities Suppose France produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good Drag the production possibilities frontier (PPF) on the graph to show the effects of an agricultural innovation that increases the crop yield of each acre of land Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.

Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther 0 1 2 450 PPF 180 PPF 50 100 150 200 300 CORN (Millions of bushels)

Hi, please I need to know how the new PPF will look like in the graph.

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Answer #1

When the new innovation increase the crop yield it will lead to a higher production of Corn and the PPf (agriculture part) will shift to the right.

Increased corn production will shift the PPF of corn to the right at a higher output 270 Old PPF New PPF 250 Corn 150The number is irrelevant as the question doesn;t tell how much the production will increase. just shift the PPF.

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