The production possibility curve is not always linear, in fact, it is usually concave down (bowed-in). The shape of the curve depends on the substutability of the goods described by the curve in the question. When goods are perfectly substitutable in production, the PPP (or PPF) is linear.
In economics when the product possibility curve moves left it shows in decrease in production possibility. Why? try to figure it out, it helps in understanding. Peace out.
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
Importance of production possibility curve in allocation resources
The PPF graph is a bowed out curve. The x-axis being quantity produced of one product/service and the y-axis being another quantity produced of a product/service. Any point on the curve is productive efficiency. Outside of the curve is unattainable and inside of the curve is inefficient.
Example of a Linear Demand Curve
In economics when the product possibility curve moves left it shows in decrease in production possibility. Why? try to figure it out, it helps in understanding. Peace out.
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
a linear curve does not represent x^2
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
Importance of production possibility curve in allocation resources
A nation loses land after being defeated in a war.
The PPF graph is a bowed out curve. The x-axis being quantity produced of one product/service and the y-axis being another quantity produced of a product/service. Any point on the curve is productive efficiency. Outside of the curve is unattainable and inside of the curve is inefficient.
Point F violates the assumption of the production-possibility curve that resources and technology are not fixed. The curve is sometimes referred to as the productionâ??possibility frontier.
Example of a Linear Demand Curve
of average product.
I have never heard that the demand curve must be concave. In fact, it is most often modeled as either linear or convex. Common convex specifications include log-linear and constant-elasticity demand functions. A number of empirical papers attempt to estimate the shape of the demand curve for specific products but I am not familiar with anyone concluding that demand is concave generally.
It is an unreachable possibility.