Production Possibilities: A Simple 2-Good Economy

Butter Guns

Possibility Tons/Mo. 100,000/Mo.

A 16 0

B 15 1

C 13 2

D 11 3

E 8 4

F 5 5

G 0 6

Possibilities A-G represent maximum output for

• A fixed level of resources
• A fixed aggregate production technology

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