given a production possibilities curve between wheat and corn, what does the equal profit line when the price of wheat is 0? The slope is 0, but where is the horizontal line located? (If the price of wheat is 0, no wheat is grown)

Question

koikkara · Answer

$\color{darkgreen}{~\huge\star~``Welcome~to~Open~Study~!!"~\star~}$ @blahdfasd

anonymous · Answer

Thanks! If you have any questions about the question let me know!

koikkara · Answer

$Curve~Is~missing~\to~$ "given a production possibilities curve"

koikkara · Answer

@blahdfasd Hey, forgot curve picture to post, because it is needed to know where the points are...!!

anonymous · Answer

Sorry! It's just a regular ppc curve that's bow shaped. (in general, how would the equal profit line if the goods on the x axis has a price of 0?)

anonymous · Answer

I'm wondering what the general shape of the line would be - is it the x axis or is it higher?

anonymous · Answer

ie: ppc intersects at (0,5) and (5,0)

koikkara · Answer

alright, let me give a try... $Till~then~go~out~have~A~walk~and~come~back~!!$

koikkara · Answer

|dw:1403254418899:dw|  Is this right ? because you may have much better Idea than i do..

Ref: Attached picture ~

anonymous · Answer

Yes it is right except it is curved and not a line!

koikkara · Answer

@blahdfasd $Now, you~May~have~the~answer~where~`X-Axis'~Lies~!!$

anonymous · Answer

Except, I'm not sure what the answer is?

anonymous · Answer

I'm sure it's a horizontal line, I'm just not sure if it is the x axis or higher...

koikkara · Answer

Alright, In case of line, what do u say.... its above X-axis or below ?

anonymous · Answer

Yes, since the product on the x axis has a price of 0, and the slope of the equal profit line is the price of the good on the x axis over the price of the good on the y axis, the slope must be 0.

anonymous · Answer

So is the equal prift line the x axis or above it is the question

koikkara · Answer

|dw:1403255707098:dw|