 Illustrates production choices  Assumptions:  Full employment  Fixed resources  Fixed technology  Two goods ©2013 McGraw-Hill Ryerson Ltd. Chapter.

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 Illustrates production choices  Assumptions:  Full employment  Fixed resources  Fixed technology  Two goods ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO61

LO5 Type of Product Pizzas (in hundred thousands) Industrial Robots (in thousands) Production Alternatives ABCDE Plot the Points to Create the Graph… 1-2 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO62

LO5 The law of increasing opportunity costs makes the PPC concave. 1-3 Pizzas Industrial Robots Attainable Unattainable A B C D E U ©2013 McGraw-Hill Ryerson Ltd.Chapter 1, LO63

LO5 a b c d e MB = MC MC MB Quantity of Pizza Marginal Benefit & Marginal Cost 1-4 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO64

Type of Product Pizzas (in hundred thousands) Industrial Robots (in thousands) Production Alternatives A'B'C'D'E' LO6 1-5 ©2013 McGraw-Hill Ryerson Ltd.Chapter 1, LO75

LO6 Pizzas Industrial Robots Attainable Unattainable A B C D E Economic Growth Now Attainable A’ B’ C’ D’ E’ 1-6 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO76

LO6 Goods for the Present Goods for the Future Goods for the Present P F Current Curve Current Curve Future Curve Future Curve Presentville Futureville 1-7 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO77