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Increases in resources or improvements in technology will cause the production possibilities frontier to?
Wiki User
∙ 12y ago
shift outward
Wiki User
∙ 12y ago
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Why does the production possibility frontier shift outwards?
A PPF will shift out if we have improvements/increases in resources and/or technology. You would see an unbiased increase (the slop of the PPF stays the same) when R+T increase in the production of both goods. You would see a biased increase (the PPF pivots around one pt) when R+T increases in the production of only one of the goods.
What does new technology generally do to production?
It lowers cost and increases supply.
Why does the marginal product of labor eventually diminish?
Marginal product eventually diminishes because the cost of doing business increases with production. The company would need to make a change in the organization so that they can shift their production possibilities.
What does law of increasing opportunity cost express?
The law of increasing opportunity costs states that as production of a product increases, the cost to produce an additional unit of that product increases as well. This law is responsible for the bowed shape of the production possibilities curve. Because not all of our economy's resources are equally well-suited to the production of a single good, the increasing opportunity cost is present.
What happens when OPEC increases in the production of oil?
What hapens is that it increases its profits:) Apex.
Increases in resources or improvements in technology will tend to cause a society's production-possibilities curve to?
shift outward
How does technology affect production possibilities?
Technology increases production per unit of input (either labor or capital). Any increase in technology necessarily increases output per unit of input.
What effects does increased technology have on the production possibilities curve?
It shifts to the rightIt will have an affect only if the resource increases as well. Technology increases production per unit of input. Any technology involved necessary increases output per unit of input.
A country's production possibilities will grow if it?
increases its resources.
How does technology affect production?
Technology increases production per unit of input (either labor or capital). Any increase in technology necessarily increases output per unit of input.
Why does the production possibility frontier shift outwards?
A PPF will shift out if we have improvements/increases in resources and/or technology. You would see an unbiased increase (the slop of the PPF stays the same) when R+T increase in the production of both goods. You would see a biased increase (the PPF pivots around one pt) when R+T increases in the production of only one of the goods.
What does new technology generally do to production?
It lowers cost and increases supply.
Why does an advance in technology increase supply?
because labor's or capital's productivity increases and costs of production fall
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 does the marginal product of labor eventually diminish?
Marginal product eventually diminishes because the cost of doing business increases with production. The company would need to make a change in the organization so that they can shift their production possibilities.
What does law of increasing opportunity cost express?
The law of increasing opportunity costs states that as production of a product increases, the cost to produce an additional unit of that product increases as well. This law is responsible for the bowed shape of the production possibilities curve. Because not all of our economy's resources are equally well-suited to the production of a single good, the increasing opportunity cost is present.
How would the quality of education increase affect the location of a country's production possibilities curve?
the quality of education that increases will improve the human capital which is one of the factors of production. therefore, the pp curve will shift outwards against potential growth.
