Explain how the production possibilities frontier illustrates ...

[maychende]

Explain how the production possibilities frontier illustrates scarcity.
 
  What will be an ideal response?

Question 2

Under current guidelines, the Federal Trade Commission will likely challenge
 
  A) all mergers if the Herfindahl-Hirschman index (HHI) is 2500 or higher.
  B) a merger if the HHI is 2500 or higher and the merger increases the HHI by more than 200 points.
  C) a merger if the HHI is 2500 or higher and the merger increases the HHI by more than 50 points.
  D) a merger if the HHI is 1500 or higher and the merger increases the HHI by more than 300 points.

[s.meritte]

Answer to Question 1

The PPF illustrates scarcity because we cannot attain the points outside the frontier.

Answer to Question 2

B

[maychende]

Excellent

[mohan]

Wow, this really help