Draw a production possibilities frontier showing increasing opportunity cost for hammers and horseshoes.
- On a graph, identify the area of feasible outcomes and the area of infeasible outcomes.
- On the graph, label a point that’s efficient as point “E” and a point that inefficient as point “I”.
- On a graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to
- make both horseshoes and hammers, on this economy.
- On a graph for hammers and horseshoes, illustrate the effect a new computerized assembly line
- in the production of hammers would have.
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