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Why is production possibility curve not a straight line?

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Why is production possibility curve NOT a straight line? | Socratic Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. This is known as opportunity cost. Microeconomics Science

Why is production possibility curve NOT a straight line ?

Why is production possibility curve NOT a straight line? Because of increasing MRS (marginal rate of substitution). As more unit of good 1 is produced,there will be a decrease in the production of good 2 (This is the theory of MRS). Only when MRS/MOC is constant, will the ppc be a …

Why is the production possibility curve downward sloping? If the PPF is a STRAIGHT LINE as shown in the first graph, then the slope is CONSTANT. This means the opportunity cost is also CONSTANT. In real life, the PPF will NOT be linear; it will be a downward sloping curve because of the law of diminishing marginal returns.

What happens if the production possibilities curve is a ? If a country’s production possibility curve is a straight line, it means it can only produce only a single commodity hence the country specializes in the production of only one commodity giving all its resources and level of technology. 8.2K views View 3 Upvoters

What is the Production Possibility Frontier (PPF)? The production possibilities frontier (PPF) is curved because the cost of production is not constant. If every trade-off were the same, it would create a straight line. But the direction that PPF is curved comes from the way that the trade-offs change. A …

Why is the production possibilities curve bowed out in ?

The production possibilities curve is bow-shaped precisely because there reaches a critical point at which the produciton of less guns means the possibility for more butter, and vice versa.

Why Not A Straight Line? Why Not A Straight Line?[8/10]by openlecturesThe outward bowing curve describes the phenomenon of increasing opportunity cost.--^^^ SUBSCRIBE above for more

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Why Production possibilities frontier (PPF) drawn as curve ?

Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when quantity of one good produced …

Why is production possibility curve concave? The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from the production of one commodity to the other. If production possibility curve is a straight horizontal line it means _____. View solution. View solution. View

What Is a Bowed Production Possibility Curve? This chart is also termed a “production possibility frontier,” or, PPF. When making this graph, a business considers many variables: Its access to resources, strengths and skill set. Because a company’s ability to produce two distinct items is not always equal, the chart reveals a bowed-shape curve instead of a linear function.

Last modified: February 10 2021

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