Question

explain the characteristics of Production Possibility Frontier(PPF).

Answer 1

downward sloping PPF is downward sloping because all the resources are not equally efficient to produce both the given commodities does to produce more of one commodity we have to sacrifice more and more resources from the production of an another commodity does as there is ainverse relationship between the production of two commodities so PPC is downward sloping

concave in shape PPC is concave in shape due to increasing m o c that is marginal opportunity cost it increases because to produce more of one commodity we have to sacrifice more and more resources from the production of another commodity does the IMO she is always increasing and due to this PPC is concave in shape

Answer 2

Answer:The two basic characteristics or features of PPF are:

1. PPF slopes downwards:

PPF shows all the maximum possible combination of two goods, which can be produced with the available resources and technology. In such a case, more of one good can be produced only by taking resources away from the production of another good. As there exists an inverse relationship between changes in quantity of one commodity and change in quantity of the other commodity, PPF slopes downwards from left to right.

2. PPF is Concave Shaped:

PPF is concave shaped because of increasing marginal opportunity costs, i.e. more and more units of one commodity are sacrificed to gain an additional unit of another commodity.

Explanation: