Question

What does slope of PPC show?​

Answer 1

Explanation:

Slope of PPC shows the ratio between the loss of output and gain of output. ... The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other.

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Answer 2

$\huge\red{Answer}$

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☆☞ [ Verified answer ]☜☆

Slope of PPC is an economic model that illustrates the concept of opportunity cost.

Basically, it shows the tradeoffs that one has to make when alternating between two products with a given set of resources that can be used to make such products.

The slope includes two axis X and Y. On the X axis is the amount produced of one product and on the Y axis is the other one.

As one amount increases, the other decreases, thus creates a slope. And by dividing their changes of quantity to each other, you’ll find out their opportunity cost.

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