Draw a production possibilities frontier that shows the trade-off between production of cotton and soybeans. Show...

Draw a production possibilities frontier that shows the trade-off between production of cotton and soybeans.

Show the effect that a prolonged draught would have an effect on the initial production possibilities frontier.
Suppose genetic modification makes soybean resistant to insects, allowing yield to double. Show the effect of this technological change on the initial production possibilities frontier.

Solutions

Expert Solution

Sol :

PPC : It is the graphical presentation of the combination of two goods that can be produced with the given resources and technology.

The effect of drought on the production of soyabean and cotton will be reduction in the resources for both the resources and this will shift the PPC to the left.

When there is technology change in relation to soyabean , and would double the soyabean production . This would shift the PPC In relation to Soyabean to upward.

Rahul Sunny answered 1 year ago

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