Question

why is production possibility curve (ppc) concave to origin?

Answer 1

Hi There,

The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). ... The shape of a PPF is commonly drawn asconcave to the origin to represent increasing opportunity cost with increased output of a good...

Hope this is helpful for you.

Answer 2

PPC looks concave to the origin because of increasing marginal rate of

transformation/substitution (or increasing marginal opportunity cost). It means that

more and more units of commodity ‘y’ are to be sacrificed, to get each additional unit of

commodity ‘x’.