Question

Explain the reason behind the concavity of production possibility frontier

Answer 1

Answer:

convativy of ppc indicates increasing marginal opportunity cost. when we increase in the production of one commodity then we have to sacrifice another commodity due to limited resources.A PPC is concave to the origin because of the increasing Marginal opportunity cost. The opportunity cost of producing the goods increase when more of the same product is produced.

The production possibilities curve, is the curve that shows the maximum number of possible units which a company can produce if it produces only two products efficiently using all of its resources.

A PPC is concave to the origin, as it is necessary to sacrifice each additional unit of good X more and more unit of good Y. The opportunity costs of producing each additional unit of good X will tend to rise as per the loss of the production of good Y.

Explanation:

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