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.
Production possibility curve is literally a circular curve. Therefore, as the point along the curve move closer to the axis, the slope increases (on vertical axis) and decreases (on vertical axis) what this means is that as the point gets closer to producing only one good (since 2 axis are 2 competing goods), you need to give up more of the other good just to get a small increase in the good you want to produce i.e. an increase in opportunity cost.
Maximum combinations of goods attainable with fixed resources.
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.
The Production Possibilities frontier/curve
a production possibilities frontier graph
production possibilities frontier
the increasing costs resulting in increasingly less outputIt means underutilization of resources.
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.
below or to the left of the production possibilities frontier
The Production Possibilities frontier/curve
a production possibilities frontier graph
decrease in the quantity of the other good that must be given up.
a production possibilities frontier graph
production possibilities frontier
the increasing costs resulting in increasingly less outputIt means underutilization of resources.
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.
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
The effects of discrimination in the production possibilities frontier is that a given business does not fulfill its ful potential.
simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth.