The production possibilities frontier is downward sloping: producing more of one good requires producing less of others. The production of a good has an opportunity cost. As time passes, the production possibilities frontier shifts outward due to the accumulation of inputs and technological progress.
Besides, why do production possibilities curves slope down from left to right?
It slopes downward from left to right- Production possibility curve slopes downward because both the variables involve in the equation are inversely related as one increase then other one decreases and vice versa because the resources are constant.
Beside above, why PPC is concave to origin?
PPF is concave to origin because of the increasing marginal opportunity costs. That is more and more units of one commodity are sacrificed to gain an additional unit of another commodity. Due to this increasing marginal cost, PPF becomes more and more steep, thus the curve bends outwards and becomes concave to origin.
What is PPC slope?
Share. Answer. The slope of production possibility curve is marginal opportunity cost or marginal rate of transformation which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other.
Can a PPC line be straight?
In Economics, PPC stands for Production Possibility Curve. Yes, it can be a straight line. For this scenario, the PPC will be a straight line curve. Here, the opportunity cost is constant, in spite of the change in production of the two goods.