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A production possibility curve is concave because of the law of diminishing returns. As more resources are allocated to one good over the other, the opportunity cost increases, which leads to decreasing marginal rates of substitution. This results in a concave curve that shows the trade-off between producing different goods.
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The study of the production of goods and services would most likely be conducted in what social sciences?
The study of the production of goods and services would most likely be conducted in the field of economics. Economics focuses on the allocation of resources to produce goods and services efficiently and how individuals, businesses, and governments make decisions related to production.
Children have the most tasks in which mode of production?
Children have the most tasks in a subsistence mode of production, where they are often involved in basic activities like gathering food, caring for animals, or helping with household chores.
According to Jared Diamond the increased food production of agricultural cultures led to the development of sophisticated forms of what?
According to Jared Diamond, the increased food production of agricultural cultures led to the development of sophisticated forms of government, social organization, and technology.
Why do you say that it was not natural fertility and high levels of food production that were the causes of early urbanisation?
While natural fertility and food production may have contributed to early urbanization, other factors such as social organization, trade networks, and strategic location played equally important roles. Urbanization often occurred at sites where different cultures and resources could converge, leading to increased social complexity and specialization. Additionally, the concentration of power and wealth in cities facilitated the development of complex societies.
Name 3 sources of carbon dioxide?
Burning fossil fuels (coal, oil, natural gas) for energy production Deforestation and land use changes, which release carbon stored in trees and soil Industrial processes such as cement production and manufacturing
Why is product possibility curve linear?
The production possibility curve is not always linear, in fact, it is usually concave down (bowed-in). The shape of the curve depends on the substutability of the goods described by the curve in the question. When goods are perfectly substitutable in production, the PPP (or PPF) is linear.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
What are the other names for production possibility curve?
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
What are the features of a normal production possibility curve?
Production Possibility curves can assume different slopes. As far as i know it can be either concave, convex or a straight line. The concave curve would be concave and downward sloping.This is explained by the law of diminishing returns and that factors used are not homogeneous.In this case the Marginal Rate of technical substitution would be rising. The curve would be convex in case of rising productivity and decreasing opportunity cost. Finally it would be a straight line when factors are homogeneous. Hope it was helpfull. Akheel.
If production set is convex then production function is concave?
correct.
What are other names of production possibility frontier?
production possibility curve
What is the most common shape of a production possibility curve Explain why this is so?
The most common shape of a Production Possibility Curve (PPC) is a concave bulging in towards the origin (or a quarter circle from one axis to the other.) This is due to the fact that as the production in one goods increase, the opportunity cost of producing the extra of that good (or the amount of Good B that it has to give up) become less.
How does the Production Possibility Frontier illustrate scarcity?
Scarcity, on a PPC (PPF) is implied by the bowed (concave-down) shape of the curve, since there is a restriction on how much can be produced and, to get more of something, one must give away something else.
What is the effect of war on a production possibility frontier?
production possibility frontier shift leftward
What is the Importance of production possibility curve?
Importance of production possibility curve in allocation resources
What does the production possibilities curve describes?
The production possibility curve is an analytical tool that is u to explain,analyse and justify the problem as regards the choices in the allocation of productive resources to achieve a given level of output in an hypothetical way. It is based on a short run period is production where some factors are held constant and the otthers can be varied to achieve a given level of output. The production possibility curve explains the rate of transformation between commodity (x and y) when the level of productive resources is given.the slope of the curve is concave to the origin and it touches both axis. The production possibility curve is also called production frontier or production boundary.
Why is Production Possibility Curve concave to the origin?
I have never heard that the demand curve must be concave. In fact, it is most often modeled as either linear or convex. Common convex specifications include log-linear and constant-elasticity demand functions. A number of empirical papers attempt to estimate the shape of the demand curve for specific products but I am not familiar with anyone concluding that demand is concave generally.
