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If the production possibilities curve (PPC) is a straight line, it indicates that the opportunity cost of producing one good over another is constant. This suggests that resources are perfectly substitutable between the two goods, meaning that the same amount of resources can be transferred between their production without any loss of efficiency. This situation is relatively rare in real-world economies, where resources typically have varying efficiencies in producing different goods. A straight-line PPC may imply a simplified model of production, often used for theoretical analysis.
What else can I help you with?
If opportunity costs were constant then the production possibilities curve would be what?
A straight line.
If the law of increasing opportunity costs is reflected in a production possibilities curve which is?
production possibilities curve convex to the origin. Elson Mendoza was here.
How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
Is the outward curve of the production possibilities curve good or bad?
it really good
Is the production possibilities curve convex to the origin?
yes
If opportunity costs were constant then the production possibilities curve would be what?
A straight line.
If the law of increasing opportunity costs is reflected in a production possibilities curve which is?
production possibilities curve convex to the origin. Elson Mendoza was here.
Is the United States on the production possibilities curve?
no
How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
Is the outward curve of the production possibilities curve good or bad?
it really good
Is the production possibilities curve convex to the origin?
yes
Where on a production possibilities curve the economy working at its most efficient production levels?
Any point on the PPC curve
How does a production possibilities curve illustrate how efficient an economy is?
A production possibilities curve illustrates how efficient an economy is by indicating the possibly opportunities in the economy. This will also illustrate the relevant costs entailed in the production.
A point that lies outside a country's production possibilities curve mean what?
A point that lies outside a country's production possibilities curve means that the country is not able to produce. The possibility curve shows how a country can efficiently produce.
An increase in technology will cause the production possibilities curve to?
shift outward
A point inside the production possibilities curve is.....?
Attainable, but the economy is inefficient.
When charted on a graph Production possibilities frontiers tend to curve?
Yes, they do.
