Assuming no resource are equally efficient in production of all goods, name curve wch shows production potential of an economy. explain givin reason, its properties
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The curve is known as Production Possibility Curve.
PROPERTIES
1.) It slopes downwards from left to right.
To produce more quantity of a good, the society has to sacrifice some quantity of another good.
2.) It is concave to the point of origin
Marginal rate of transformation which is the slope of this curve increases continuously as more and more of one good is produced reducing the quantity of the other good.
This means that you produce more and more of one units of one God each time, the quantity of the other good is sacrificed at an increasing rate.
Marginal rate of transformation increases because no resource is equally efficient in production.
PROPERTIES
1.) It slopes downwards from left to right.
To produce more quantity of a good, the society has to sacrifice some quantity of another good.
2.) It is concave to the point of origin
Marginal rate of transformation which is the slope of this curve increases continuously as more and more of one good is produced reducing the quantity of the other good.
This means that you produce more and more of one units of one God each time, the quantity of the other good is sacrificed at an increasing rate.
Marginal rate of transformation increases because no resource is equally efficient in production.
Answered by
9
Answer:
Explanation:
The curve is known as Production Possibility Curve.
PROPERTIES
1.) It slopes downwards from left to right.
To produce more quantity of a good, the society has to sacrifice some quantity of another good.
2.) It is concave to the point of origin
Marginal rate of transformation which is the slope of this curve increases continuously as more and more of one good is produced reducing the quantity of the other good.
This means that you produce more and more of one units of one God each time, the quantity of the other good is sacrificed at an increasing rate.
Marginal rate of transformation increases because no resource is equally efficient in production.
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