Figure 2.6 Production Possibilities for the Economy As we combine the production possibilities curves for more and more units, the curve becomes smoother It retains its negative slope and bowed-out shape In Panel (a) we have a combined production possibilities curve for Alpine Sports, assuming that it now has 10 plants producing skis and snowboards Even though each of the plants has a linear curve, combining them according to comparative advantage, as we did with plants in Figure 2.5 "The Combined Production Possibilities Curve for Alpine Sports", produces what appears to be a smooth, nonlinear curve, even though it is made up of linear segments In drawing production possibilities curves for the economy, we shall generally assume they are smooth and “bowed out,” as in Panel (b) This curve depicts an entire economy that produces only skis and snowboards Movements Along the Production Possibilities Curve Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 75