Question

A harsh drought killed some of the farm family's corn and several head of its cattle. Where on the production possibilities curve could you position a point to reflect these circumstances

Answer 1

Answer:

inside the PPC

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

As a result of the drought, resources would not he fully utilized. So, production would take place inside the PPC curve.