Using the PPF model discuss how a poor harvest changes Freshgold's production possibilities and whether storage technology could alter this constraint

The Production Possibilities Frontier (PPF) illustrates the maximum combinations of two goods or services that an economy or firm can produce with its available resources and technology. A poor harvest for Freshgold means a reduction in the quantity of apples produced from its existing land and labor resources. This effectively shrinks Freshgold's productive capacity, causing its PPF to shift inward. This inward shift indicates that Freshgold can now produce fewer apples and fewer of any other related products (like apple juice) than it could before, representing a decrease in its overall potential output. However, advanced storage technology could significantly alter this constraint. By allowing Freshgold to preserve apples from previous good harvests for longer periods, it can smooth out its supply over time. This means that even during a poor harvest, Freshgold could draw from its stored inventory to maintain a more consistent output level, thereby mitigating the immediate negative impact of the inward PPF shift. In the long run, effective storage also reduces spoilage and waste, which can be seen as an improvement in resource utilization, potentially leading to an outward shift of the PPF by increasing the effective output from existing resources over time. That's 2 down. 3 left today — send the next one.