Economy, asked by dashhd67, 6 months ago

Slope of production possibility curve is

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Answered by suryakipooja
1

The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). The slopedefines the rate at which production of one good can be redirected (by reallocation of productive resources) into production of the other.

Answered by tiwarishrayansh
3

Answer:

ANSWER

The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity is sacrificed that results in increasing marginal opportunity cost which leads to the concave shape of PPC to the origin.

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