Professional Documents
Culture Documents
Learning Objectives
Critical Assessment
4.1 Introduction
4.1 Introduction
O X
Cloth
Production Possibility Curve under constant costs
International Economics
O X
Cloth
Production Possibility Curve under increasing costs
International Economics
O X
Cloth
Production Possibility Curve under decreasing costs
International Economics
Y
R
B
B
R
E B1 F
A
D IC3
IC2
IC1
O C1 C L X
Cloth
Optimization by a community
International Economics
Input O U T P U T U N I T S
Units England Australia
50 150 150 50 75
40 120 120 40 60
30 90 90 30 45
20 60 60 20 30
10 30 30 10 15
International Economics
Y
P
150 England
IC Community Indifference Curve
PP Production Possibility Curve
B
R E
E 75
A
D
IC
P
O 75 150 X
Cloth
Domestic Equilibrium of Production at Constant Costs
International Economics
Y
Australia
P IC Community Indifference Curve
50 PP Production Possibility Curve
B
R E
E
A 25
D
IC
P
O 37.5 75 X
Cloth
Domestic Equilibrium of Production at Constant Costs
International Economics
Australia
Production 50 B 75 C 150 C
B M
R B1
E
A B F
D
P1
O C1 C N X
Cloth
Production Possibility Curve under increasing costs
International Economics
import of bread
. export of cloth
Y P P2
B
R C
E B2 A IC2
A IC1
D
B
B3 P1
P3
O C2 C1 C3
N X
Cloth
Production Possibility Curve under increasing costs
International Economics
B England
R
E
A
D Australia
O X
c l o t h
International Economics