Suppose an economy produces three goods rice bananas and


Suppose an economy produces three goods (rice, bananas, and strawberries).

Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.

The PPF with a constant opportunity cost will be a downward sloping straight line.

The PPF with increasing opportunity costs will look like a concave shaped curve bowed outwards.

With three goods, the PPF is a three dimensional figure with three axes, R, B and S.

How do you draw one graph for three products with constant opportunity; then a second graph for the three products with increasing opportunity?

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Business Economics: Suppose an economy produces three goods rice bananas and
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