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Answer on Economics of Enterprise Question for jothi

Question #37322
Describe the effect of frequent trade union actions to stop work on its position in the& production possibility space.
Expert's answer
Answer on Question #37322 - Economics - Economics of Enterprise.

Production Possibility Frontier - PPF is a curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). The PPF assumes that all inputs are used efficiently.
The frequent trade union actions to stop work on its position will shift the PPF to the left, as these actions will hamper the economy development.

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