The graph below represents the Production Possibility Frontier for the country of Sandia for 2 groups of goods or services: Infrastructure (like bridges and roads) and technology and researd
The graph below represents the Production Possibility Frontier for the country of Sandia for 2 groups of goods or services: Infrastructure (like bridges and roads) and technology and researd
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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Transcribed Image Text:The graph below represents the Production Possibility Frontier for the country of Sandia for 2
groups of goods or services: Infrastructure (like bridges and roads) and technology and research.
Production Possibility Frontier - Country of Sandia
12
10
0, 10
1,9
2,7
3, 4
4,0
2
3
5
Infrastructure
The Production Possibility Frontier of Sandia illustrates the law of diminishing returns because...
The opportunity cost of producing additional infrastructure projects is higher when Sandia is already
producing 2 than when it is producing 3 infrastructure projects.
The opportunity cost of producing technology and research projects is falling as more technology and
research projects are produced in Sandia.
The opportunity cost of producing additional infrastructure projects is higher when Oz is already producing
3 than when it is producing 2 infrastructure projects.
Sandia needs less and less resources to produce additional infrastructure projects because of greater
expertise.
Technology and Research
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