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1. Farmer Brown has four fields that can produce corn or tobacco. Assume that the trade-off between corn and tobacco within each field is constant. The maximum yields are given in this table:

Field A B C D
Corn 40 40 30 10
Tobacco 10 40 20 30

a. Draw Farmer Brown's production possibility frontier

Respuesta :

MissPhiladelphia
Field          A     B   C     D
Corn         40   40  30  10
Tobacco  10   40  20  30

Production possibility frontier is defined as a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently. 

In the PPF, Corn data is represented by the y-axis, Tobacco data is represented in the x-axis. I simply inputted the points but didn't make the curve because there is a point that seem to go beyond the curve. Please see attachment.
Ver imagen MissPhiladelphia

The production possibility frontier (PPF) shows the maximum output possible by combing two good or services a company has. When all resources are used to the best of their ability, you are able to see the different trends and predictions they will have. Economic growth can shift the PPF due to the changes in possible outcome if there is an increase in a good or service.

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