Using a diagram, analyse the production possibilities frontier.

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1. Refer to Figure 2-6. Consider the production possibilities frontier for an economy that produces only sofas and cars. The
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3. Before Frank and Ruby engage in trade, each of thema. consumes at a point inside his or her production possibilities frontier.
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4. Figure 3-4A pair of linear production possibilities frontier curves of lemonade versus pizzas for two individuals, Alice and
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