Draw a production possibilities frontier (ppf) for this farm

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Reference no: EM131240733

A farm can produce either chickens or horses, or both. The chickens eat corn, while the horses eat oats and hay. Both chicken and horse production is characterized by diminishing returns.

a. Draw a production possibilities frontier (PPF) for this farm.

b. Another farm can produce either chickens or turkeys, or both. The chickens and turkeys both require the same food. Furthermore, they fight with each other when they are kept in the same space. Thus, producing a combination of chickens and turkeys is less efficient than producing only chickens or only turkeys. Draw a PPF for this farm.

c. Which of the PPFs you have just drawn has a "corner solution"? Explain what this means.

Reference no: EM131240733

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