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What is a production possibility frontier curve?
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.
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.
Explain why a production possibilities curve is concave?
Because when one produces one product, the opportunity cost of the other product increases i.e. the concave represents the increasing opportunity cost with the production of a good.
Why do car manufacturers give both power curve and torque curve when one is a direct function of the other?
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Is curve the opposite of straight?
Curve is one possible opposite of straight if straight refers to line that does not bend. Other meanings of straight like honest, heterosexual, and direct have different opposites than curve.
