COMM 220 Lecture Notes - Lecture 5: Italian Sausage, Root Mean Square, Utility
2 Dec 2018
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For people it is a model of tastes; for. Rms it is a model of technology and resources. A production possibility curve, like the one in the. Gure, sets out the most of one good that a rm can be produce given the amount of the other good to be produced. If the rm chooses to produce 365 meat pies then its technology permits it y. 740 to produce up to 890 kg of sausage (point b). The shape of a rm"s production possibility curve depends on the current state of technology and the quantity and quality (or productivity) of its factors of production land, labour, and capital. Another rm producing the same meat pies and sausage may have a production possibility curve that is atter or more rounded or pushed out more or less. Production possibility curves can represent the production tradeoffs for a person, a.
