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Suppose Scotland produces only pressure cookers and air fryers.

Suppose Scotland produces only pressure cookers and air fryers. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally effective at producing both air fryers and pressure cookers.

The shape of Scotland’s production possibilities frontier (PPF) should reflect the fact that as Scotland produces more air fryers and fewer pressure cookers, the opportunity cost of producing each additional air fryer remains constant

Explanation:
Recall that the same set of resources is equally effective at producing both air fryers and pressure cookers. This means that if Scotland decides to produce more pressure cookers and fewer air fryers, the resources that it uses to produce the additional pressure cookers will be as well suited to the production of pressure cookers as the resources already being used in pressure cooker production. Therefore, the opportunity cost of producing each additional pressure cooker remains constant as more pressure cookers are produced.

The following graphs show two possible PPFs for Scotland’s economy: a straight-line PPF (PPF1PPF1) and a bowed-out PPF (PPF2PPF2).

Suppose Scotland produces only pressure cookers and air fryers.

Based on the previous description, the trade-off Scotland faces between producing air fryers and pressure cookers is best represented by Graph 1

Explanation:
For bowed-out PPFs, the opportunity cost of producing pressure cookers is reflected in the curvature of the PPF. In flatter regions, producing an additional air fryer requires giving up fewer pressure cookers. However, in steeper regions, producing an additional air fryer requires giving up more pressure cookers. In other words, the opportunity cost of producing air fryers changes as you move along the PPF.
For linear PPFs, the opportunity cost of producing air fryers is constant and reflected in the slope of the PPF. If the PPF is flatter, producing an additional air fryer requires giving up fewer pressure cookers. If the PPF is steeper, producing an additional air fryer requires giving up more pressure cookers.
In this case, because the opportunity cost of producing additional air fryers remains constant as more resources are shifted to the production of air fryers, the PPF must be linear. Therefore, Graph 1 best represents the trade-off Scotland faces between producing air fryers and pressure cookers.

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