Describe the characteristics of production possibility curve.
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Characteristics of PPF
(a) Concave to the origin: PPF or PPC is concave to the origin. This is because the opportunity cost of producing a good in terms of the loss of the output of other good, tends to increase.
(b) Downward sloping curve: PPC curve is downward sloping from left to right. This is because for production of every additional unit of one good, more and more units of other good has to be sacrificed.
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