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Suppose Denmark produces only scooters and pressure cookers

Suppose Denmark produces only scooters and pressure cookers. The resources that are used in the production of these two goods are specialized—that is, some resources are better suited for producing scooters than pressure cookers, whereas others are better suited for producing pressure cookers than scooters.

The shape of Denmark’s production possibilities frontier (PPF) should reflect the fact that as Denmark produces more pressure cookers and fewer scooters, the opportunity cost of producing each additional pressure cooker increases

Explanation:
Recall that some resources are better suited for producing scooters than pressure cookers, whereas others are better suited for producing pressure cookers than scooters. This means that if Denmark decides to produce more scooters and fewer pressure cookers, the resources that it uses to produce the additional scooters will be less suited to the production of scooters than the resources already being used in scooter production. Therefore, the opportunity cost of producing each additional scooter increases as more scooters are produced.

The following graphs show two possible PPFs for Denmark’s economy: a straight-line PPF (PPF1) and a bowed-out PPF (PPF2).

Suppose Denmark produces only scooters and pressure cookers

Based on the previous description, the trade-off Denmark faces between producing pressure cookers and scooters is best represented by Graph 2

Explanation:
For bowed-out PPFs, the opportunity cost of producing scooters is reflected in the curvature of the PPF. In flatter regions, producing an additional pressure cooker requires giving up fewer scooters. However, in steeper regions, producing an additional pressure cooker requires giving up more scooters. In other words, the opportunity cost of producing pressure cookers changes as you move along the PPF.
For linear PPFs, the opportunity cost of producing pressure cookers is constant and reflected in the slope of the PPF. If the PPF is flatter, producing an additional pressure cooker requires giving up fewer scooters. If the PPF is steeper, producing an additional pressure cooker requires giving up more scooters.
In this case, because the opportunity cost of producing additional pressure cookers increases as more resources are shifted to the production of pressure cookers, the PPF must be bowed out. Therefore, Graph 2 best represents the trade-off Denmark faces between producing pressure cookers and scooters.

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