Explaine PPC (Production possibility curve) class 11th economics..........
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Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology. The rightward shifting of the curve (new curve) shows the growth of resources. PPC is concave to the origin.
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firstly, ppc is downward sloping because of limited and fixed resources. if we want to increase production for good x we have to sacrifice some units of good y.
secondly, ppc is concave to the point of origin because of increasing or rising marginal opportunity cost (MOC) or marginal rate of transformation(MRT).
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