When the Opportunity Cost or the tradeoff between the two goods is always at a constant rate.
under what conditions an econoy would be operating inside its production possibility frontier?
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.
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
The intention of the measurement is to capture the value of the total production, which would be market price as estimated by the mechanisms in place to monitor and report GDP, A disadvantage is that it can over or understate true GDP if there is a change in market conditions for some subset of production that does not have another co-linear variable to adjust after the fact.
Linear programming, especially in economics is vital for being able to make accurate estimates of goods output, costs and stock levels needed to carry out certain tasks. It is best to assume that the conditions do not change drastically.
under what conditions an econoy would be operating inside its production possibility frontier?
If the variable x is raised to the power of 1 or 0. No other possibilities.
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.
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Wilfred Candler has written: 'Linear programming with stochastic yields' -- subject(s): Linear programming, Management, Production control
A. N. Ahmed has written: 'Experiments in reduction techniques for linear and integer programming' 'A modified production procedure for linear programming problems'
This detergent is the linear alkylbenzene sulfonate.See this link for several production details.
Linear equations can used in many areas. They are particularly useful in determining the most economical delivery patterns in trucking and in distribution. They are also used to establish the most effective patterns for production line loading in large scale production
Volume of Production
a1 = b1 = c1 a2 = b2 = c2
Linear isoquant [perfect substitutability of factors of production], Input-output isoquant or Leontif isoquant [no substitution or strict complementarity; only one efficient method of production] are exceptions to isoquant convexity to the origin. Kinked isoquant is of limited substitutability at kinks. But if kinks come closer and closer, it will become a smooth curve, convex to the origin.
Two possibilities: The line is linear over some of its length and then goes non-linear (or the other way round: Think of a mass, at the end of a string, being swung in a circle. Then the string is cut. The motion of the mass would have been circular (lon-linear) until the instant the string was cut and then linear, as it flies off into a tangent. Or The line is linear from one perspective but not from another: Think of the trajectory of a ball that is thrown up at an angle to the horizon. If seen from above, the ball travels in a straight line (linear) but if seen from the side it follows a parabola (non-linear). Hope that helps.