Principles of Microeconomics / Unit 16 MIC 1506 short lesson, about 20 seconds
The Straight-Line Frontier and Consuming Beyond It
Captions available
The idea
With constant opportunity cost the frontier is a straight line, simplifying unit one's bowed curve. Trade does not move the frontier; it lets consumption sit outside it: the gain from trade.
In practice
Northland makes eight hundred tons, consumes five hundred plus two hundred bolts: beyond it.
Where people slip
Production stays on the frontier; only consumption goes beyond; with rising costs specialization is partial.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it