Economy, asked by shubhd32, 1 year ago

why production possible curve slopes downwards

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Answered by sushmita
4
This means the opportunity cost is also constant. In real life, the PPF will not be linear, it will be a downward sloping curvebecause of the law of diminishing marginal returns. PPC slopes downwards and it can be concave or convex to origin or it can be a straight line sloping downwards.
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