Question

what is the economic implication of the following shapes of ppf
i) convex ppf
ii) concave ppf
iii) Linear but downward sloping ppf

Answer 1

3 linear but downward slopping ppf

Answer 2

Answer:

product possibility frontier is a curve that represents the combination of 2 goods that an economy can produce with full and efficient use.

Explanation:

concave ppf implies: It implies that increasing marginal  opportunity cost  or increasing MRT.

Linear but downward sloping ppf- it implies that of sacrifice of units  of other good is  constant that is MRT is constant when all resources are equally efficient.

convex ppf- when sacrifice of units  of other good goes on decreasing then it becomes convex