On a certain small island, there are only 100 units of labour (L) and 200units of capital (K) available. Two commodities can be produced on thisisland, A and B. The production function for commodity A is given byQAgiven by QB = min (LB, KB). Find the production possibilities frontier forthis island. Illustrate the production possibilities set for this island.min (LA, () KA). The production function for commodity B is

To produce two goods A and B , endowments of inputs are L=100 and K=200.

On a certain small island, there are only 100 units of labour (L) and 200 units of capital (K) available. Two commodities can be produced on this island, A and B. The production function for commodity A is given by QA = min (LA, (G) KA). The production function for commodity B is given by QB = min (LB, KB). Find the production possibilities frontier for this island. Illustrate the production possibilities set for this island.

On a certain small island, there are only 100 units of labour (L) and 200 units of capital (K) available. Two commodities can be produced on this island, A and B. The production function for commodity A is given by QA = min (LA, (G) KA). The production function for commodity B is given by QB = min (LB, KB). Find the production possibilities frontier for this island. Illustrate the production possibilities set for this island.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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