Question

What is the Shape of ppc curve?​

Answer 1

Answer:

the shape of production possibility curve (PPC) reveals important information about the opportunity cost involved in producing two goods. when the PPC is a straight line, opportunity cost are the same no matter how are far you moving along the curve.

Answer 2

What is the Shape of ppc curve?​

• PPC has a concave contour as more and more units of one commodity are given up in order to obtain an extra unit of another. We can manufacture anywhere inside the PPC, though, if there is unemployment or inefficient resource use. The curve of production potential is explained by this idea.
• The standard representation of a production possibilities curve is concave to the origin to indicate the rising opportunity cost as a good's output grows. PPC is concave-shaped as more and more units of one commodity are given up to gain an additional unit of another.
• Because of the rising marginal rate of transformation, PPC has a concave shape. It suggests that progressively more units of one commodity were given up in order to obtain a further unit of a different commodity. Due to a declining marginal rate of transformation, PPC has a convex shape.
• The production possibility curve's (PPC) shape provides crucial details regarding the opportunity cost associated with creating two items. Opportunity costs are constant no matter how far down the curve you walk when the PPC is a straight line.

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