(Solved): 1. Specialization and production possibilities Suppose france produces only cars and trucks. The re ...

1. Specialization and production possibilities Suppose france produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars. The shape of France's production possibilities frontier (PPF) should reflect the fact that as france produces more trucks and fewer cars, the opportunity cost of produchno each additional truck The following graphs show two possible pPFs for France's economy: a straight-line PPF (PPF_) and a bowed-out PPF (PPF2).