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By Michael C. Lovell

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00. 00 of revenue. But the vertex (kink point) at 3 1/3, 3 1/3 is better for it yields revenue of 6 2/3. 5. Each iso-revenue curve constitutes the locus of all points yielding the same revenue. 00 iso-revenue curve are feasible. Point 3 1/3, 3 1/3 is feasible and lies on the 6 2/3 iso-revenue curve. Since the 6 2/3 iso-revenue curve just touches the production transformation curve only at point 3 1/3, 3 1/3 , graphical intuition suggests that this point yields the revenue maximizing output. 10 To determine the kink-point note that it must lie on both 2X + 4Y = 20 and 2X + Y = 10.

Search Strategy #3 If your library has JSTOR you can not only search for articles on your topic published in any of the 25 leading economics or finance journals in this wonderful data base. You will be able to download the article you found from this archive and print it on your computer. July 20, 2004 22 14:26 Economics with Calculus bk04-003/chap 1 Economics with Calculus Write a review Write a three or four page review of your article. ), and the major conclusions of the paper. Did you find the argument convincing?

2 Production transformation — Mobilizing for World War II For a second production transformation curve example, consider the mobilization of the United States economy for World War II. 2 is a rough but not unreasonable estimate of the tradeoffs between producing civilian goods versus production for the war effort. On the ordinate (y-axis) we plot total expenditures on war. On the abscissa (x-axis) we have civilian utilization, defined as Gross Domestic Product minus wartime expenditure. 3 In 1939 we had civilian utilization of 891 billion and war output of 12 billion.

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