<1.5 PPC>

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"The 'PRODUCTION POSSIBILITY CURVE (PPC)' also known as the PRODUCTION POSSIBILITY FRONTIER (PPF), is an economic model used to illustrate the economic concepts of FACTORS OF PRODUCTION, SCARCITY, CHOICE, and OPPORTUNITY COST."

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"This model condenses the output of an entire economy into two categories (e.g., capital vs. consumer goods) and then plots the various combinations that the economy can produce given its LIMITED FIXED STOCK OF RESOURCES within a chosen time period. It clearly illustrates 'choice,' 'trade-offs,' and 'opportunity costs.'"

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"Let's start with imagining a simple island economy that can produce either 🍏 or 🍓 on a 'per day' basis..." 

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('Insert image of labeled axis')

"Correct! It's a 'straight line' with a 'gradient of one,' 100/100; in other words, the trade-off (aka the opportunity cost) is CONSTANT, for every additional +1 🍏, we forgo a -1 🍓, and vice versa."

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"But for this to be the case, 'CLONING' 😶😶😶😶😶😶 would need to be legal as all the workers MUST be equally suitable for producing both products, and the opportunity costs would be identical like the table below."

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"We can see that for every additional apple, a single strawberry must be forgone (for example, a worker can pick 9 apples and 1 strawberry, giving up 1 apple for the strawberry and so on)."

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"...in other words the assumption that creates the constant straight PPC is not realistic, as not all resources/workers are the same in terms of productivity ('imperfect factor mobility')."

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--TASK--

"Below is a table showing the productivities of workers with different heights and corresponding productivity levels. Now, using graph paper plot the PPC and explain the shape in terms of increasing opportunity cost!"

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UNEVEN OUTWARD SHIFT ('PIVOT')