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A point inside the PPF means that resources are not being used efficiently. One or more resources (Land, labor, or capital) is being waisted or not used to its potential. More of both goods could be produced than are currently being produced.
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Point F violates which assumption of the Production Possibility Curve?
Point F violates the assumption of the production-possibility curve that resources and technology are not fixed. The curve is sometimes referred to as the productionâ??possibility frontier.
What is a production possibility frontier curve?
Basically the PPC represents the hypothetical amount of two different goods that could be obtained by using resources from the production of one for the production of the other. It also describes society's choice between two different goods. When a point is on the curve it means all the resources for those goods is at full employment, anything under the curve is at under-employment, and anything beyond the curve indicates potential growth.
If the given point is inside the polygon?
Then the point is not outside the polygon...?
What is the difference between inscribed and circumscribed?
== == Inscribed is a polygon inside a circle with all points on a given point in the circle. Circumscribed is a circle inside a polygon with any given point touching just one point on the polygon. Hope this helped.
What does breakeven point mean?
Breakeven Analysis is the process of categorizing costs of production between variable and fixed components and deriving the level of output at which the sum of these costs, referred to as total costs per unit become equal to sales revenue. The analysis helps to determine the 'Breakenev Point' from this point of equality of sales revenue with total costs. At the breakeven point, the production activity neither generates a profit nor a loss. Breakeven analysis is used in production management and Management Accounting.
In a production possibilities frontier model a point inside the frontier is?
Attainable.
Where would a point of underutilization appear on a product possibilities graph?
below or to the left of the production possibilities frontier
Where would a point of underutilization appear on a production possibilities?
below or to the left of the production possibilities frontier
Where would a point of under utilization appear on a production possibilities?
below or to the left of the production possibilities frontier
Where would a point of under utilization appear on a production possibilities graph?
below or to the left of the production possibilities frontier
A production point beyond the production possibilities frontier represents what?
This represents a production point that could be achieved if there were suffecient resources available.
A point inside the production possibilities curve is.....?
Attainable, but the economy is inefficient.
What does a point inside a production possibilities curve represent?
A point inside a production possibilities curve represents things that can be produced. However, points inside the curve would be less efficient to produce than those points resting directly on the line.
Where on a production possibilities curve an economy working below its most efficient production levels is shown?
At any point of underutilization/any point inside of the curve
A point outside a production possibilities frontier is?
A point outside a PPC shows the problem of scarcity. A point outside the Production Possibility Curve shows a combination that cannot be attained because sufficient quantity of resources are not available to produce them.
Use a production possibilities frontier to describe the idea of efficiency?
Efficiency is greatest when diminishing returns is at its most efficient point. In a possibilities frontier if I have two items, I want to make sure I am not over-producing one item or the other because then my opportunity costs are high and that is inefficient.
Any point inside the production possibilities curve indicates?
It indicates that more output could be produced with available resources in that region.
