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Thank you We sneak and here's your shmoop du jour

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Brought to you by quakers They're more than just a

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bunch of people who sell oats They also do rice

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cakes Assume quaker ville can produce either oats or cotton

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And the opportunity cost of producing one unit of cotton

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in terms of boats is constant for any level of

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production What will the production possibilities curve for this economy

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Look like all right potential answers right Both in your

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boat Boat boat Well we're drawn grafts now underway to

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think through this problem So get your crayons people We

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start with this thing mr x and mr y and

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this vertical line covers boats and this horizontal line covered

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cotton need to figure out if the answer is a

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curve shaped like this This this or well this So

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if we think through the logic of any of these

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curves the answer should come to us in well pretty

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straightforward fashion A curve either up or down sideways or

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backwards is going to give uneven distribution of resource is

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think about an extreme curve like this if we reduce

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cotton production just a tiny bid like from here to

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here then glam o production volumes of road explode The

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same happens with any of the other kurt Small moves

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of resource is on one side of the equation Have

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dramatic changes on production availability of the other constraint Good

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but the problem kind of gives us the answer It

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says the opportunity cost of oats is constant for any

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level of production constant meaning that what should happen is

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if we moved back a scotia this way reducing cotton

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production As we move our dot thing in toward the

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origin then the ability to produce more oats should increase

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similarly or constantly Well small moves this way imply small

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moves that way So the answer is b linear and 00:01:54.032 --> [endTime] that's How we roll our oats

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