Explain the concept of Production possibility curve with the schedule while taking
an example of two goods scooter and motorcycle the producer BAJAJ is producing.
Also, explain in brief why the curve is concave to the point of origin.
Answers
Answered by
2
Answer:
production possibility curve shows the best possible combination of two goods which an economy can produce with the efficient use of resources and given technology.
schedule
scooter motorcycle
10 0
8 2
5 4
0 6
PPC is concave to origin because marginal rate of transformation or marginal opportunity cost
which states 'sacrifice of y commodity more and more to get equal and addtional unit of x commodity'
Hope you understand
Similar questions