PRECAUTIONARY ASSETS AND THE PRODUCTION POSSIBILITIES FRONTIER
The input orientation gives the proportional reduction in all inputs that would bring a farm to the frontier isoquant while the output model reflects the proportional increase in outputs attainable by moving to the production possibilities frontier
holding input quantities constant.
(Administration, it is perhaps worth noting, is an intermediate input for these two outputs, rather than an output itself.) The concept of a production possibilities frontier
, as most economists must agree, is well-suited to analyse this issue.
Therefore, both types of treatment can be proportionately increased if the hospitals' production plans lie within the production possibilities frontier
In addition, the model described below includes a convex production possibilities frontier
In a similar fashion, if they can't combine two individual (linear) production possibilities frontiers
to get a joint production possibilities frontier
, it is extremely unlikely that they will develop any real understanding of such important concepts as opportunity cost (as represented by the slope of a production possibilities frontier
), comparative advantage, and absolute advantage.
To illustrate the first point, consider technological progress that shifts the production possibilities frontier
from [T.sub.0] to [T.sub.1] in figure 2.
This same Pareto problem also describes the production issue giving rise to a production possibilities frontier
if production functions are substituted for the value functions and x is a scarce input.
However, Marshallian demand is misleading in general equilibrium, since prices and endowments are not fixed but are given by the production possibilities frontier
. (4) We do not need an explicit expression for the tax revenue to complete the arguments.
The static framework is based on the standard tools of analysis such as a production possibilities frontier
(PPF) and the corresponding Edgeworth box's 'efficiency locus'.
250 crore), would go a long way to expand production possibilities frontiers
of MSMEs and create new employment opportunities in the economy," said Anil Khaitan.
They correctly identify nonconvexities, in the form of diseconomies of scope, as the fundamental factor responsible for the postulated shifts in the production possibilities frontiers