other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
Diminishing Marginal returns to capital and labor.
PPC curve slopes downward for the efficient resouress of another commidty
Basically the PPC represents the hypothetical amount of two different goods that could be obtained by using resources from the production of one for the production of the other. It also describes society's choice between two different goods. When a point is on the curve it means all the resources for those goods is at full employment, anything under the curve is at under-employment, and anything beyond the curve indicates potential growth.
When a prod poss curve is a straight line, usually it is an exception, this means that as you produce more of one thing you constantly give up the same proportion of another thing as the scenario would be that the factors of production are 100% mobile. With a bowed out prod poss curve, usually called normal, the situation would be that as you produce more of product A you give up alot of B but eventually the rate of substitution begins to decline due to lack in factor efficiency and so the curve becomes less elasstic. Hope this answeres your question. all the best,
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
Importance of production possibility curve in allocation resources
production possibility curve
Production Possibility Curve this is an image of a ppf/ ppc
it can not
It is an unreachable possibility.
In economics when the product possibility curve moves left it shows in decrease in production possibility. Why? try to figure it out, it helps in understanding. Peace out.
a movement of the production point closer to the curve
Diminishing Marginal returns to capital and labor.
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.
as in production possibility curve compares production rates of two commodities, this compares prices of different commodities.