Jump to content

Production Possibilities Frontier

Featured Replies

This is from economics but it's mainly a math problem I'm dealing with. In this economic model we are dealing with two goods, textiles T and electronics E and two countries China C and Japan J.

 

The lecturer put the images below up. The first image is a graph of the goods price ratio to the goods ratio. These is the relative supply curve.

 

The countries are initially in autarky and after free trade both country J and country C move towards the world relative supply [math]RS^W[/math].

 

3778.gif

 

The second image below is the production possibilities frontier of country J, a graph of textile output to electronics output.

 

3779.gif

 

What I want to know is whether the J and W in the second image are the right way around because I suspect that they are the wrong way around.

 

I'm not sure if I've explained this clearly. If anyone knows about this topic in enough detail to compensate for my incoherence, I'd be grateful.

Could you maybe define the axes in the first diagram that would help me understand the problem a little better.

Archived

This topic is now archived and is closed to further replies.

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Configure browser push notifications

Chrome (Android)
  1. Tap the lock icon next to the address bar.
  2. Tap Permissions → Notifications.
  3. Adjust your preference.
Chrome (Desktop)
  1. Click the padlock icon in the address bar.
  2. Select Site settings.
  3. Find Notifications and adjust your preference.