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Determine the shape and position of the frontier

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Question: The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possibilities frontier to illustrate society's trade-off between two "goods" - a clean environment and the quantity of industrial output. What do you suppose determines the shape and position of the frontier? Explain what happens to the frontier if engineers develop a new way of producing electricity that emits fewer pollutants. Answer the question in 3-5 paragraphs.

Reference no: EM132290506

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