2. A nation with fixed quantities of resources is able to produce any of the following combinations of Bus and Car (both

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2 A Nation With Fixed Quantities Of Resources Is Able To Produce Any Of The Following Combinations Of Bus And Car Both 1 (25.23 KiB) Viewed 12 times

2. A nation with fixed quantities of resources is able to produce any of the following combinations of Bus and Car (both are measured in thousands). Points A. B. C. D. E. F. Bus 75 60 45 30 15 0 Car 0 12 22 30 36 40 a) Graph the production possibility frontier (PPF) using the above information. b) Suppose that a new technology is discovered that allows twice as many cars can be produced and the technology can be used in the current period at no additional cost. Illustrate the effect of the new technology on the PPF.