Why is the production possibility frontier (curve) concave in shape (bows outward)?
Why is the production possibility frontier (curve) concave in shape (bows outward)?
Homework Answers
Production possibility frontier is the locus of all combinations of inputs that generate equal amount of output.
Hence as we increase one of the inputs the units of other inputs used decrease and the concavity of PPF curve is due to opportunity cost and marginal opportunity cost . opportunity cost increase in non linear way that's the concept is shape of PPF plays the role
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Why is the production possibility frontier (curve) concave in
shape (bows outward)?
The fact that a society's production possibility frontier is bowed out, or concave to the origin...
The fact that a society's production possibility frontier is bowed out, or concave to the origin of a graph, demonstrates the law of _____ opportunity cost. concave constant increasing decreasing
In the case of a bowing outward Production Possibility Frontier an economy is interdependent and engaged...
In the case of a bowing outward Production Possibility Frontier an economy is interdependent and engaged in trade instead of self-sufficient the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. the rate of tradeoff between the two goods being produced is constant the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
How does aging change the shape or size of the production possibility frontier in the Grossman...
How does aging change the shape or size of the production possibility frontier in the Grossman model from period to period? Draw a graph to demonstrate the effect of aging, and include a short paragraph of text justifying the changing shape or size of the PPF.
# 2. In a given country, only two good on the production possibility frontier: s are...
# 2. In a given country, only two good on the production possibility frontier: s are produced: potatoes or airplanes. Here are the points Maximum Annual Output Options Potatoes Airplanes 1,300 1,100 900 700 500 350 450 525 575 630 (i) Draw a production possibility frontier with the quantity of potatoes on the horizontal (Gi) What is the opportunity cost per unit of expending production from 450 airplanes to 525 (ii)at is the opportunity cost per unit of increasing the...
The production possibility curve is bowed outward from the origin because of: Group of answer choices...
The production possibility curve is bowed outward from the origin because of: Group of answer choices improper output mix. unemployment. the finite nature of the resource base. inefficiency. the law of increasing opportunity costs.
The ________ production points on a production possibility curve are the points along and inside the...
The ________ production points on a production possibility curve are the points along and inside the production possibility frontier. A) attainable B) unattainable C) productively efficient D) allocatively efficient
Why is the production possibilities frontier (PPF) typically bowed-outward? Under what circumstances would the PPF be...
Why is the production possibilities frontier (PPF) typically bowed-outward? Under what circumstances would the PPF be a straight line?
Why is the shape of the production possibilities frontier often curved instead of straight.
Why is the shape of the production possibilities frontier often curved instead of straight.
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a....
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a. In order to sketch this equation, first compute its intercepts. What is the value b. Calculate three additional points along this production possibility frontier. c. Is the opportunity cost of X in terms of Y constant in this economy, or does it d. How would you calculate the opportunity cost of X in terms of Y in this of Xif Y-0? What is the...
1. Economic growth can best be shown by: a. An outward shift of the production possibility...
1. Economic growth can best be shown by: a. An outward shift of the production possibility frontier b. An inward shift in the production possibility frontier c. A fall in GNP d. A lower GDP per person 2. A current account trade deficit means that... a. spending on imported goods and services equals the export earnings over a given period b. spending on imported goods and services is greater than the export earnings over a given period c. spending on...
In the case of a bowing outward Production Possibility Frontier an economy is interdependent and engaged in trade instead of self-sufficient the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. the rate of tradeoff between the two goods being produced is constant the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
# 2. In a given country, only two good on the production possibility frontier: s are produced: potatoes or airplanes. Here are the points Maximum Annual Output Options Potatoes Airplanes 1,300 1,100 900 700 500 350 450 525 575 630 (i) Draw a production possibility frontier with the quantity of potatoes on the horizontal (Gi) What is the opportunity cost per unit of expending production from 450 airplanes to 525 (ii)at is the opportunity cost per unit of increasing the...
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a. In order to sketch this equation, first compute its intercepts. What is the value b. Calculate three additional points along this production possibility frontier. c. Is the opportunity cost of X in terms of Y constant in this economy, or does it d. How would you calculate the opportunity cost of X in terms of Y in this of Xif Y-0? What is the...
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