Production Possibility Frontier

Instructor: Sérgio O. Parreiras

Course: ECON 101 - Introduction to Economics

Choose a production technology:

Production Functions (Declining Marginal Products):
$\text{Clothing: } c(K,L) = \sqrt{K \cdot L}$
$\text{Food: } f(K,L) = \sqrt{K} + 2\sqrt{L}$

Resource Endowments: Total Capital = 200, Total Labor = 200

Allocate capital and labor to the clothing industry. The remaining factors go to the food industry.

Capital for Clothing ($K_c$):

0.1 Capital for Food: 100.0 199.9

Labor for Clothing ($L_c$):

0.1 Labor for Food: 100.0 199.9

Model Selection