Authors libby rittenberg 75
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Figure 2.6 Production Possibilities for the Economy
As we combine the production possibilities curves for more and more
units, the curve becomes smoother. It retains its negative slope and
bowed-out shape. In Panel (a) we have a combined production
possibilities curve for Alpine Sports, assuming that it now has 10
plants producing skis and snowboards. Even though each of the plants
has a linear curve, combining them according to comparative
advantage, as we did with 3 plants in Figure 2.5 "The Combined
Production Possibilities Curve for Alpine Sports", produces what
appears to be a smooth, nonlinear curve, even though it is made up of
linear segments. In drawing production possibilities curves for the
economy, we shall generally assume they are smooth and “bowed out,”
as in Panel (b). This curve depicts an entire economy that produces
only skis and snowboards.
Movements Along the Production Possibilities
Curve
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
75
