Draw and explain a production possibility frontier for an economy that produces milk and cookies What happens to this frontier if disease kills half of the economies cow population?

Answer 1

If a disease kills half of the economy's cow population, less milk production is possible, so the PPF shifts inward (PPF2). Note that if the economy produces all cookies, so it doesn't need any cows, then the production is unaffected. But if the economy produces any milk at all, then there will be less production possible after