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Suppose that there are two countries, A and B, each of which produces two goods, X and Y. The production possibilities frontier (PPF) for each country is linear, with quantities of Y plotted on the vertical axis and quantities of X plotted on the horizontal axis. The PPF for Country A has a vertical intercept of 60 and a horizontal intercept of 60. The PPF for Country B has a vertical intercept of 30 and a horizontal intercept of 15.

Required:
What would be true about Country A?


Sagot :

Answer:

They can produce their goods equally.

Explanation:

Country A can produce their products equally with the available products in hand.