Explain why ppf before war is different from ppf after war


Before the Gulf War, Kuwait had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Kuwait's PPF before and after the war, assuming that the only two goods produced are oil and food. Further assume that setting the oil wells on fire did not affect Kuwait's ability to produce food. Explain why the PPF before the war is different from the PPF after the war. Hint: we did technological change in the class where it does contribute to one side of the production use that to understand the problem.

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Microeconomics: Explain why ppf before war is different from ppf after war
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