0
The production possibility curve is a graph that shows the combinations of two goods that a firm or a nation can create. On the X axis is one good, and on the Y axis is another good. The curve itself shows the combination of goods at maximum efficiency. This curve implies that anything above the curve cannot be produced. If production is inside the curve then the firm or individual is being inefficient and not producing to maximum capacity. If the curve is a straight line this implies that there are no diminishing returns, that no matter how much you produce one good the firm or individual will always produce the same number of goods. The slope of a straight production possibility curve is the opportunity costs of those goods; as an individual or firm decreases the time to produce one good it is able to increase the time to produce the other good. This is compared to a bowed curve which implies diminishing returns. Diminishing returns implies that the returns to labor decrease as a firm or individual produces more of a certain good. This is the concept of the low hanging fruit principle, it takes less time to produce initially because the firm or individual picks the lowest hanging fruit first and then as the number of low hanging fruits dissipates it takes more effort and labor to pick the harder to get fruits. A curve can also imply the diversity of skills in a given population. If we assume that the low hanging fruit principle doesn't exist, we cannot assume that all people in a population will be equally good at a certain task. In order to produce more of a given product a firm will first hire the best individuals for the task and then inevitably will have to hire individuals that are worse at the job, reducing the returns for a given person.
What else can I help you with?
Economic growth can be shown as a movement from a point one production possibility curve to a point on a curve located father from the origin. True or False?
TRUE
Where on a production possibilities curve an economy working below its most efficient production levels is shown?
At any point of underutilization/any point inside of the curve
How does under utilisation or efficiency shown on a PPC?
Underutilization on a Production Possibility Curve (PPC) is represented by points inside the curve, indicating that an economy is not producing at its full potential. This inefficiency may arise from factors such as unemployment, underemployment, or misallocation of resources. In contrast, points on the curve signify efficient production, where resources are fully utilized. Thus, the area within the curve highlights the gap between actual output and potential output.
What is shown on a production possibilities frontier curve?
It shows a range of two product quantities that may be created from limited resources. By Lecho648
What relationship is shown by a supply curve?
What is shown by a supply curve, is the marginal cost of the company that you are considering, from the point it crosses the average costs function.
Economic growth can be shown as a movement from a point one production possibility curve to a point on a curve located father from the origin. True or False?
TRUE
Where on a production possibilities curve an economy working below its most efficient production levels is shown?
At any point of underutilization/any point inside of the curve
What is shown on the x and y axes of PPF graph?
The production possibility frontier graph shows the various quantities of two products that can be produced. The two products may be shown on either axis.
What is shown on a production possibilities frontier curve?
It shows a range of two product quantities that may be created from limited resources. By Lecho648
What relationship is shown by a supply curve?
What is shown by a supply curve, is the marginal cost of the company that you are considering, from the point it crosses the average costs function.
Shown by the intersection of the supply curve and the demand curve?
the equilibrium price of a good or service
Which of the following is shown by the intersection of the supply curve and the demand curve?
the equilibrium price of a good or service
Law of increasing opportunity costs reflected in a PPC is concave to the origin?
The Law of Increasing Opportunity Cost that is shown in a Production Possibilities Curve is concave to the origin. This is because it shows the maximum gain of two products used in production.
How is speed shown on distance time graph?
By the slope of the curve.
How speed shown on a distance-time graph?
By the slope of the curve.
How is speed shown on a distanced-time graph?
By the slope of the curve.
What must be held constant among bonds whose interest rates are shown on a yield curve?
What must be held constant among the bonds whose interest rates are shown on yield curve
