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Why do production possibilties frontiers tend to curve because they show?
Wiki User
∙ 12y ago
the increasing costs resulting in increasingly less output
Wiki User
∙ 12y ago
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When charted on a graph Production possibilities frontiers tend to curve?
Yes, they do.
Production possibilities frontiers curve when they are charted on a graph because they show?
the increasing costs resulting in increasingly less output
What does the law of increasing cost explain?
The law of increasing cost explains that as production increases, the opportunity cost of producing additional units of a good also increases. This is because resources are not equally efficient in producing all goods, and as more of one good is produced, resources are shifted from their most efficient use to less efficient uses.
What is a production possibilities frontiers?
Basically the PPC represents the hypothetical amount of two different goods that could be obtained by using resources from the production of one for the production of the other. It also describes society's choice between two different goods. When a point is on the curve it means all the resources for those goods is at full employment, anything under the curve is at under-employment, and anything beyond the curve indicates potential growth.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
What are the other names for production possibility curve?
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
What was the Production Budget for Trouble with the Curve?
The Production Budget for Trouble with the Curve was $60,000,000.
How a production possibility curve depends on factors of production?
A production possibility curve depends on factors of production because they are all part of one big group. For example, if raw material does not arrive when needed, there can be no production. Each part of the production process depends on the step before it.
What is the Importance of production possibility curve?
Importance of production possibility curve in allocation resources
What happens to a supply curve if a tax on a good is repealed?
The supply curve of that good will increase or move to the right because the cost of production will have decreased.
Where on a production possibilities curve the economy working at its most efficient production levels?
Any point on the PPC curve
When charted on a graph producing possiblities frontiers tend to curve because they show?
the increasing costs resulting in increasingly less output
