An economy produces racing cars and robots. The economy’s initial production possibility frontier (PPF$_1$) is shown in the diagram below.
The economy’s production possibility frontier shifts to PPF$_2$ and as a result of this change the
A number of racing cars that can be produced for each robot given up has increased.
2 )
opportunity cost of producing robots is now lower.
3 )
output of racing cars will be higher than the output of robots.
4 )
productive efficiency of producing robots has risen.
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