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Production possibility frontier for the production

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Reference no: EM131601186

a) Draw a Production Possibility Frontier for the production of hamburgers and milkshakes at a hamburger restaurant (which faces increasing marginal opportunity costs).

b) Indicate a point 'X' on your diagram that is attainable, but is inefficient.

c) Describe a scenario in which the restaurant might be producing at point 'X', and justify your answer.

d) Explain the real-world reasoning behind why the production possibility frontier would be likely to have the shape that you have drawn.

Reference no: EM131601186

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