Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 2, Problem 2.1.5PA
To determine

A hypothetical production possibilities frontier

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The figure to the right illustrates the trade-offs facing Ford Motor Company. The line in the graph is Ford's production possibilities frontier. If Ford uses all its resources to produce trucks, how many can it produce? 10.0 thousand trucks per day. (Enter a numeric response using a real number rounded to one decimal place.) Suppose Ford is currently building 3 thousand cars per day. To build an additional 1 thousand cars, how many fewer trucks can be built? thousand fewer trucks per day. According to the graph, building 11 thousand cars and 11 thousand trucks per day is Quantity of trucks (1,000s per day) 12- PPF 7 8 9 10 Quantity of cars (1,000s per day) 12 13 14 Q Q
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