Construct a production possibility frontier to illustrate Tom’s earnings potential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month).
Answers
Answer:
Following is the curve drawn to showcase Tom's earnings.
Explanation:
his choices are carpenter the other option is missing in the question, thus a standard model of PPF ( Production possibility Frontier is given below)
Firstly, A production possibility frontier measures the maximum output of two goods or services whilst using a fixed( non varying), amount of input.
Following is a picture of attached diagram to help for better understanding.
Considering that TOM first worked in Week 1 , we can represent that as point A on the PPF, then his week 2 , could be point B, his week 3 will be point C and his week 4 will be point D.
This shows how along the curve his income and earnings level was changing, depending on him leaving his carpenter work for this other job.
TIP: PPC AND PPF IS THE SAME
