Can someone please tell me how or why the curve shifts outward.
In the textbook, I was given that:
"But if we cut production of mobile phones to 3 million this year, we can produce 2 mobile phone factories at point K."
"Then next year, our PPF shifts outward because we have more capital"
I might be wrong here, but is it saying that because we reduced production of mobile phones, we can use the spare $$$, to invest in capital resources to speed up/increase the production of mobile phones next year?
If so, then why is it talking about 2 mobile phones at point K if we reduce production cost to 3 million. Is this related to the outward shift?
Also, why is the curve asymmetric?
Any help would be greatly appreciated.