why is ppc convex to the origin
Answers
Answer:
Therefore the PPC curve can be convex to the origin when the opportunity cost decreases. This can happen only when less and less units are forgone of first commodity for the introduction of additional unit of another commodity. ... This will lead the Production Possibility Curve to be convex to origin.
Explanation:
Answer:
When there is a decrease in the cost of opportunity, PPC will be convex shaped to the origin.
Explanation:
PPC is the graphical representation of alternate combinations of production of "two goods or services” by transferring resources of one goods or service to another. When the production of one commodity is forgone for introduction of “an additional unit of another commodity”, it results in Production Possibility Curve convex to the origin. This curve is known as transformation curve.