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Suppose Ireland produces only air fryers and pressure cookers

Suppose Ireland produces only air fryers and pressure cookers. 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 pressure cookers and air fryers.

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

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

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

Suppose Ireland produces only air fryers and pressure cookers

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

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

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