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Also known as a reducing radius curve.
The corner gets tighter or sharper as you go through it.
Can be quite dangerous as the curve looks like you can go quickly and then the safe speed reduces.
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∙ 13y ago
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Why is the production possibility curve bowed out from the origin of the curve?
Diminishing Marginal returns to capital and labor.
How does the principle of diminishing marginal utility explain the slope of the demand curve?
The principle of diminishing marginal utility explains the slope of the demand curve by letting us be able to see which direction the slope is in, which is always downward.
Why does the shape of the free fall curve tell you about how an object moces when it is in free fall?
if its a velocity / time curve, it will show diminishing acceleration (slope of the curve) up to terminal velocity (forces balanced)
True or false. The U shape of the long-run ATC curve is the result of diminishing returns?
False
Why is A nation's production possibilities curve is bowed out from the origin?
When there are diminishing marginal returns to factors of production, the PPF is "bowed out" from the origin.
Why avc curve U shape?
Overall because of diminishing marginal returns. The marginal cost curve, MC, decreases until diminishing marginal returns set in and and it begins to increase. When the MC is below the AVC, the AVC must fall. When the MC is above the AVC, the AVC must rise. In otherwords, if the marginal cost is decreasing the average cost must be decreasing as well and vice versa.
Why does the average cost curve fall at the initial stage then rise again?
The average cost curve fall at the initial stage due to increasing returns on variable factors of production. It then rises due to diminishing returns, which causes costs Êto rise.
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
Give details that why an Indifference Curve is not concave?
Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it
What happens to marginal utility when you move down on the demand curve?
as we move down on the demand curve, marginal utility of a commodity starts declining bcoz of the law of diminishing marginal utility.after getting full satisfaction from a commodity both demand and marginal utility of that commodity decreases.
What does a marginal utillity curve shows?
It shows how much utility you would get for each unit of consumption. It has a positive slope that decreases as the unit of consumption increases due to the law of diminishing returns.
Why does the production possibility curve decrease at increasing rate?
As more inputs of production are switched from the production of one good to another, their marginal output is decreasing (see: diminishing returns to capital).
