0
What else can I help you with?
What is trading possibility frontier?
as in production possibility curve compares production rates of two commodities, this compares prices of different commodities.
Would the production-possibility frontier look different in a command economy?
The production-possibility frontier would not look different in a command economy compared to a market economy because the PPF equate the rates of production between two goods which both use equal factors of production.
Increasing opportunity cost along a bowed out production possibilies frontier occurs?
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because resources are not perfectly adaptable for the production of different goods. As production shifts from one good to another, the resources that are reallocated are less suited for the new good, leading to a higher cost in terms of the quantity of the other good forgone. This results in a concave shape for the frontier, illustrating that the trade-offs become steeper as more of one good is produced. Consequently, the opportunity cost increases as the economy moves along the frontier.
What is difference between opportunity cost curve and production possibility curve?
Production possibility curve represent the production of an economy by using the all possible factor of production and Opportunity cost curve show that a person move from one department , industry etc to another for better opportunity or better salary.
Why does ppf useful in command economy?
The Production Possibility Frontier (PPF) is useful in a command economy as it visually represents the trade-offs and opportunity costs associated with resource allocation decisions made by the government. It helps policymakers understand the maximum potential output of different goods and services, facilitating efficient planning and prioritization of resources. By illustrating the limits of production, the PPF can guide strategic decisions to achieve desired economic goals while balancing various sectors. Ultimately, it aids in assessing the impact of changes in resource distribution on overall economic performance.
What is trading possibility frontier?
as in production possibility curve compares production rates of two commodities, this compares prices of different commodities.
Would the production-possibility frontier look different in a command economy?
The production-possibility frontier would not look different in a command economy compared to a market economy because the PPF equate the rates of production between two goods which both use equal factors of production.
Would the production possibility frontier look different in a command economy?
The production-possibility frontier would not look different in a command economy compared to a market economy because the PPF equate the rates of production between two goods which both use equal factors of production.
What is difference between opportunity cost curve and production possibility curve?
Production possibility curve represent the production of an economy by using the all possible factor of production and Opportunity cost curve show that a person move from one department , industry etc to another for better opportunity or better salary.
Why a production possibility is concave?
A production possibility curve is concave because of the law of diminishing returns. As more resources are allocated to one good over the other, the opportunity cost increases, which leads to decreasing marginal rates of substitution. This results in a concave curve that shows the trade-off between producing different goods.
What are the features of a normal production possibility curve?
Production Possibility curves can assume different slopes. As far as i know it can be either concave, convex or a straight line. The concave curve would be concave and downward sloping.This is explained by the law of diminishing returns and that factors used are not homogeneous.In this case the Marginal Rate of technical substitution would be rising. The curve would be convex in case of rising productivity and decreasing opportunity cost. Finally it would be a straight line when factors are homogeneous. Hope it was helpfull. Akheel.
Why does the PPF most goods bowed outward?
The Production Possibility Frontier (PPF) is typically bowed outward due to the principle of increasing opportunity costs. As production of one good increases, resources must be reallocated from the production of another good that may be less suited for that purpose, leading to less efficient resource use. This means that the more you produce of one good, the larger the sacrifice of the other good, hence the PPF's concave shape. This reflects the reality that not all resources are equally adaptable to the production of different goods.
Why the production possibilities frontier bowed outward.?
The bowed out shape of the production possibility curve is because certain factors of production are better suited to producing one good than they are to producing another good. For example, if the two goods are food and clothes, then in order to produce more and more clothes, eventually the most productive farmland must be allocated to clothes production. As a result, the opportunity cost of producing ever-larger quantities of clothes rises as more clothes are produced. So at first when reallocating the resources to produce more clothes, the unfertailed land will be sacrificed, this land may just produce 40 units of food, so the opportunity cost for producing cloths will be low, but then, as the state will reallocate more resources to produce clothes, the most fertailed land will be sacrificed, which may produce 100 units of food, this will raise the opportunity cost for each unit of cloth being produced.
Identify 3 different shapes of PPF?
A Production Possibility Frontier (PPF) is a curved bowed out from the origin. It is mostly 2 dimensional and involving 2 goods or services.
How do diagrams help us interpret information?
Diagrams help us interpret information by illustrating relationships between different things.
What are the different dangers of oxygen?
Flammability, possibility of impurities
What is a production possibility frontier curve?
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.
