An economy has workers each worker can make 4 cakes or 3 shirts however, many others work in the...

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An economy has workers each worker can make 4 cakes or 3 shirts however, many others work in the same industry. Draw the production possibility frontier

Robert · Accepted Answer

So economy only making shirts makes: 5*3 = 15 
So economy only making cakes makes: 5*4 = 20 
 
The law of diminishing returns does not hold because of this line "Each worker can make 4 cakes 
or 3 shirts however many others work in the same industry.

An economy has workers each worker can make 4 cakes or 3 shirts however, many others work in the same industry. Draw the production possibility frontier

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