Question

Write the assumptions of production possibility curve?

Answer 1

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the assumption of production possibility curve. Production possibility curve is acurve representing all possible combinations of the maximum total output that can be producedin an economy assuming a fixed amount of resources and the techniques of production.

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Answer 2

(1) resources are used to produce one or both of only two goods,

(2) the quantities of the resources do not change,

(3) technology and production techniques do not change,

(4) resources are used in a technically efficient way.