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Suppose Spain produces only cars and digital cameras. The resources that are used in the production of these two goods are specialized—that is, some resources are more suitable for producing cars than digital cameras, whereas others are more suitable for producing digital cameras than cars.

The shape of Spain’s production possibilities frontier (PPF) should reflect the fact that as Spain produces more digital cameras and fewer cars, the opportunity cost of producing each additional digital camera

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91562499

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