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Why ppc slopes downward?
Ppc slopes downward due to the following reasons: 1. Substitution effect. 2. Income effect. 3. Diminishing marginal utility.
Why does a production possibility curve have a downward sloping curve?
PPC curve slopes downward for the efficient resouress of another commidty
Error -5001 0xffffec75?
I had that problem to but i went to this http://www.error-repair-tools.com/ppc/index.php?t=5001&gclid=CNyEvf7AvZwCFQZcbQodXkcwoA
What assumptions determine the production possibilities curve?
Assumptions to determine the PPC is:only 2 goods will be illustratedthe amount of resources is fixedstate of technology is constant
Why does the production possibilities curve bow out from the origin?
The production possibility curve (PPC) is a two dimensional model, showing how resources can be used to produce two different goods or services or types of good and services. The graph is bowed outwards due to a basic concept used in economics - the principle of increasing cost. If a producer were to produce more of one good or service, the constant in resources and technology would not be able to maintain the previous amount of production of the other good or service. If more of one good or service is produced, the opportunity cost of the reduction of the other good or service increases, therefore the gradient of the curve increases.
