Question

Explain Features of PPC curve.. class 11th economics......

Answer 1

Answer:

The two main characteristics of PPC are:

Slopes downwards to the right: PPC slopes downwards from left to right. It is because in a situation of fuller utilisation of the given resources, production of both the goods cannot be increased simultaneously. More of commodity A can be produced only with less production of commodity B.

Concave to the point of origin: It is because to produce each additional unit of commodity A, more and more units of commodity B will have to be sacrificed. Opportunity cost of producing every additional unit of commodity A tends to increase in terms of the loss of production of commodity B. Production will act upon the law of increasing marginal opportunity cost.

Answer 2

firstly, ppc is downward sloping because of limited and fixed resources. if we want to increase production for good x we have to sacrifice some units of good y.

secondly, ppc is concave to the point of origin because of increasing or rising marginal opportunity cost (MOC) or marginal rate of transformation(MRT).