Question

Explain the shape of PPC Frontier?

Answer 1

The shape of a PPF is commonly drawn as concave to the origin to represent increasing opportunity cost with increased output of a good. Thus, MRT increases in absolute size as one moves from the top left of the PPF to the bottom right of the PPF.

Answer 2

Answer:

A concave shaped production possibility curve indicates increasing opportunity cost the opportunity cost of the commodity is the quantity of the Other commodity which need to be given up to get 1 unit of it.