Authors libby rittenberg 82
Bạn đang xem bản rút gọn của tài liệu. Xem và tải ngay bản đầy đủ của tài liệu tại đây (389.38 KB, 1 trang )
possibilities curve, we say that it is engaging in efficient production. If it is
using the same quantities of factors of production but is operating inside
its production possibilities curve, it is engaging in inefficient production.
Inefficient production implies that the economy could be producing more
goods without using any additional labor, capital, or natural resources.
Figure 2.9 Efficient Versus Inefficient Production
When factors of production are allocated on a basis other than
comparative advantage, the result is inefficient production. Suppose
Alpine Sports operates the three plants we examined inFigure 2.4
"Production Possibilities at Three Plants". Suppose further that all
three plants are devoted exclusively to ski production; the firm
operates at A. Now suppose that, to increase snowboard production, it
transfers plants in numerical order: Plant 1 first, then Plant 2, and
finally Plant 3. The result is the bowed-in curve AB′C′D. Production on
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
82
