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1393AFE Economics For Decision Making 1

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Answers: 1. a. A PPC  (Rittenburg & Tregarthen) is bowed out due to increasing opportunity costs of producing a good. Consider X and Y. This means that to produce more of X we must reduce Y as our resources are fixed. We have to move from point A to B. To produce 1 more X, we have to pull out resources ( like labor ) from Y and put them into factories for X. We reduce Y as shown by red line as we move from A to B to get 1 more...

Read More arrow Tags: Australia Berkeley Management Production Management University of Queensland MBA 

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