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The Specific Factors Model Production possibilities To analyze the economy's production possibilities, we need only to ask how the economy's mix of output changes as labor is shifted from one sector to the other Figure 3-1 illustrates the production function for manufactures Copyright C 2003 Pearson Education, Inc Slide 3-8Copyright © 2003 Pearson Education, Inc. Slide 3-8 ▪ Production Possibilities • To analyze the economy’s production possibilities, we need only to ask how the economy’s mix of output changes as labor is shifted from one sector to the other. • Figure 3-1 illustrates the production function for manufactures. The Specific Factors Model
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