Question

Explain the economic implication of the following shape of a p.p.f
concave shape
convex shape
linear shape

Answer 1

Answer:

concave ppf implies: It implies that increasing marginal  opportunity cost  or increasing MRT.

Linear but downward sloping ppf- it implies that of sacrifice of units  of other good is  constant that is MRT is constant when all resources are equally efficient.

convex ppf- when sacrifice of units  of other good goes on decreasing then it becomes convex