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How can production possibilities frontier explain law of increasing opportunity cost?
The shape of the curve is convex to the origin which shows increasing opportunity cost. Consider the changes in reduction of one good's output as production of the other good is increased by the same amount. as the reduction progresses it will become greater due to steeper gradient.
What else can I help you with?
What is the purpose of the production possibilities frontier?
The purpose of the production possibilities frontier is that a combination of goods produced will utilize full quality. And also, the production of goods are cannot be increased without increasing its quality.
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
What tool helps a producer set up an efficient system of production?
a production possibilities frontier graph
Increasing opportunity cost along a bowed out production possibilies frontier occurs?
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because resources are not perfectly adaptable for the production of different goods. As production shifts from one good to another, the resources that are reallocated are less suited for the new good, leading to a higher cost in terms of the quantity of the other good forgone. This results in a concave shape for the frontier, illustrating that the trade-offs become steeper as more of one good is produced. Consequently, the opportunity cost increases as the economy moves along the frontier.
What line that shows different production possibilities for an economy?
production possibilities frontier
What is the purpose of the production possibilities frontier?
The purpose of the production possibilities frontier is that a combination of goods produced will utilize full quality. And also, the production of goods are cannot be increased without increasing its quality.
Where would a point of underutilization appear on a product possibilities graph?
below or to the left of the production possibilities frontier
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
What tool helps a producer set up an efficient system of production?
a production possibilities frontier graph
Increasing opportunity cost along a bowed out production possibilies frontier occurs?
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because resources are not perfectly adaptable for the production of different goods. As production shifts from one good to another, the resources that are reallocated are less suited for the new good, leading to a higher cost in terms of the quantity of the other good forgone. This results in a concave shape for the frontier, illustrating that the trade-offs become steeper as more of one good is produced. Consequently, the opportunity cost increases as the economy moves along the frontier.
What tool helps producers set up an efficient system of production?
a production possibilities frontier graph
What line that shows different production possibilities for an economy?
production possibilities frontier
A production possibilities frontier with a bowed outward shape indicates?
A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. Some resources are more specialized towards specific tasks.
Why the production possibilities frontier graph is in curve?
the increasing costs resulting in increasingly less outputIt means underutilization of resources.
Illustrate on Production Possibility Frontier diagram if the economy experiences a technological boom?
In economics, the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the "transformation curve") is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone. ( hope you can build on this) -- BY ASMA In economics, the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the "transformation curve") is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone. ( hope you can build on this) -- BY ASMA
Society's production possibilities frontier is based on?
simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth.
What are the effects of discrimination in the production possibilities frontier?
The effects of discrimination in the production possibilities frontier is that a given business does not fulfill its ful potential.
