Business, 19.02.2021 16:50 alyssamaize
Suppose Italy can only produce two goods, spaghetti and pizza. There are two cities, Rome and Napoli. By themselves, Rome each month can produce either 30 pounds of spaghetti and no pizza, or 50 pizzas and no spaghetti, or any combination in between. Napoli, by themselves, each month can produce 40 pounds of spaghetti and no pizza, or 30 pizzas and no spaghetti, or any combination in between.
Required:
Assuming that all production possibility frontiers are straight lines, draw the diagram that shows the monthly production possibility frontier for the Italy and the monthly production possibility frontier for the Rome.
Answers: 1
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Suppose Italy can only produce two goods, spaghetti and pizza. There are two cities, Rome and Napoli...
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