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What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?

We start here with an initial PPF which shows the possible combinations of apples and computers that an economy can produce with the resources it has. If a new way of creating computer chips makes the computer industry more productive and the apple farming industry is unaffected, then the PPF will move out in the direction of computer production, but not in apple production.

Matthew D. GCSE Economics tutor, A Level Economics tutor, GCSE Maths ...

6 months ago

Answered by Matthew, an A Level Economics tutor with MyTutor


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