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Explain how an economy can operate beyond its institutional production possibility frontier but not.....?

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.....its physical production possibility frontier?

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  1. That's' because institutional possibilities curve is only part of whole production possibility frontier.

    Production possibility frontier is actually sum of many sectors of economy - so internal redistribution of resources are possible to extend institutional production out from it's frontier but by the cost of another economy sectors - so total effect remains unchanged (increase in one production is offset by decline in another sector).

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