10 am section
Monday, September 18, 2017
10:10 AM
-straight line PPF -> oc of production is constant
-accurate? Assume no T produced.
|
|||
|
|||
|
Now assume factors of production are different -some pro-level all star, all american, division 1, top draft, pole position, tea workers
| ||
|
Increasing costs
- OC of producing X is low when not much X is produced.
- OC of producing X is high when a lot of X is produced.
Exercise
In US is OC of TVs high or low (incr costs)? No TVs are produced in US so oc of TVs is low
In US is OC of movies high or low (incr costs)? High because movie industry is large
Productivity
Created with Microsoft OneNote 2016.