Why the slope of PPC is concave?

Answer: Production Possibility Curve (PPC) is concave in shape it is due to the increase in the marginal rate of transformation(MRT). It shows that when more and more units of a commodity are sacrificed in order to add an additional unit of another commodity.

What does the slope of PPC indicate Class 11?

NCERT Class 11 Economics – Indian … Slope of the PPC defines the rate of producing two goods with available resources and technology. So, the production of one good depends on the production of other good, which impacts the opportunity cost of producing the good.

What does the slope of PPF indicate Class 11?

The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other.

What does slope of PPC show class 11?

Slope of PPC shows the ratio between the loss of output and gain of output. The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other.

What is the slope of PPC Brainly?

What does the slope of PPF indicate Brainly?

Answer: The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). The slope defines the rate at which production of one good can be redirected (by reallocation of productive resources) into production of the other.

What is shape of PPC?

The shape of a production possibility curve (PPC) reveals important information about the opportunity cost involved in producing two goods. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing.

Why is PPF negatively sloped?

The negative slope of the production possibilities frontier reflects opportunity cost. The opportunity cost of producing more meals is that fewer web pages can be created. Further, it will be able to produce new goods. Another factor shifting the production possibilities frontier outward over time is technology.

Can PPC be convex?

PPC is convex shaped because of decreasing marginal rate of transformation. It implies that less and less units of commodity sacrificed to gain an additional unit of another commodity.