Resources are not perfectly shiftable between production of the two goods.
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
an efficient utilization of resources
The curve moves inward
A point inside the curve on a production possibilities curve (PPC) represents an inefficient use of resources, where the economy is not operating at its full potential. This indicates that more of one or both goods could be produced without sacrificing the production of another good. It suggests underutilization of labor, capital, or technology. In contrast, points on the curve represent efficient production levels.
production possibilities curve convex to the origin. Elson Mendoza was here.
When there are diminishing marginal returns to factors of production, the PPF is "bowed out" from the origin.
The PPF is bowed outwards (concave to the origin) as tradeoffs between the production of any two goods are constant.
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
an efficient utilization of resources
The curve moves inward
The curve moves inward
shift outward
Diminishing Marginal returns to capital and labor.
production possibilities curve convex to the origin. Elson Mendoza was here.
That is true :)
the increasing costs resulting in increasingly less outputIt means underutilization of resources.
It shows the various combination of goods and services that can be produced if all society's resources are used efficiently.