Suppose Bulgaria produces both agricultural and capital goods. The following dia

Question

Suppose Bulgaria produces both agricultural and capital goods. The following diagram shows its current production possibilities frontier (PPF) for corn, an agricultural good, and robots, a capital good. Drag the PPF to show the effects of an improvement in soil quality because of new fertilization techniques. Tool tip: Position your cursor over any dots outlined in orange and drag to the desired position. Dots will snap into position, so if you try to move a dot and it snaps back to its original position, just try again and drag it a little farther.

Explanation / Answer

133.50 point

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