Assume that there is an economy that is only producing two goods: trains and boats. The table below shows all the maximum combinations of the two goods that can be produced in this economy in a period. Combination Trains Boats A 80 0 B 70 50 C 50 80 D 0 100 Q1. Explain the effect that an improvement in the technology used in the production of trains and boats will have on the economy. (Note: No graph is required)

Assume that there is an economy that is only producing two goods: trains and boats. The table below shows all the maximum combinations of the two goods that can be produced in this economy in a period. Combination Trains Boats A 80 0 B 70 50 C 50 80 D 0 100 Q1. Explain the effect that an improvement in the technology used in the production of trains and boats will have on the economy. (Note: No graph is required)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 1.2P

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