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 Simple Linear Opportunity  Set

This is an example of a most simple economic decisions under constraint of limited resource. It involves:

single factor of production

LABOR

two products

BREAD and CLOTH

two technologies

BAKING and WEAVING

Note that for each product, there is only one technology,  and both products require the input of the same factor of production. The technologies are assumed to be 'fixed coefficients',  i.e. requiring the constant quantity of input per each unit of output.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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