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Why is the ppf concave to the origin?
because it has increasing opportunity costs
Why does the shape of the ppf slope downwards to the right and bulge out?
The slope of the PPF at a given point is the amount of good 'A' that would have to be sacrificed to get an additional unit of good 'B" That is the opportunity cost of getting an extra unit of good 'B' It bulges outwards (it is concave) because of the increasing opportunity cost If the slope is lineaar (straight) the opportunity cost will be constant and no sacrifice will be made. Three results can result from the PPF these are.. 1) Unattainable 2) Attainable and efficient 3) Attainable but inefficient Innefiency refers to when TB (total benefit) mines TC (tolat cost) is not maximised.
Why in a production possibilities frontier model a point inside the frontier is attainable?
A PPF is the locus of points such that all the economy's resources are used to its fullest potential. A PPF is concave to the origin because of the increasing opportunity cost to produce an additional unit of x (on the horizontal axes). A point inside the PPF is attainable because (1) there may be no full employment or (2) inspite of full employment they are used to less potential. On the contrary a point outside the PPF is not attainable because the PPF itself is the locus of the maximum attainable output given resources, the PPF may however expand due to increase in resources or their efficiency.
Is it constant opportunity cost if it's along the PPF?
Yes, when moving along a production possibility frontier (PPF), the opportunity cost is constant if the PPF is a straight line. This indicates that resources are perfectly adaptable for the production of either good, meaning that the trade-off between the two goods remains the same. However, if the PPF is curved, the opportunity cost is increasing, as resources are not equally efficient in producing both goods.
Why does PPF become a straight line?
The Production Possibility Frontier (PPF) becomes a straight line when the opportunity cost of producing one good over another remains constant. This typically occurs when resources are perfectly substitutable between the two goods, meaning that the trade-off between them doesn't change regardless of the quantity produced. In contrast, a curved PPF reflects increasing opportunity costs, where reallocating resources leads to a less efficient trade-off.
Why is the ppf concave to the origin?
because it has increasing opportunity costs
What causes ppf to be a straight line?
when the oppotunity cost is a constant the PPF will be a stright line
Why does a production possibilities curve have a bowed-out shape?
The PPF is bowed outwards (concave to the origin) as tradeoffs between the production of any two goods are constant.
Why does the shape of the ppf slope downwards to the right and bulge out?
The slope of the PPF at a given point is the amount of good 'A' that would have to be sacrificed to get an additional unit of good 'B" That is the opportunity cost of getting an extra unit of good 'B' It bulges outwards (it is concave) because of the increasing opportunity cost If the slope is lineaar (straight) the opportunity cost will be constant and no sacrifice will be made. Three results can result from the PPF these are.. 1) Unattainable 2) Attainable and efficient 3) Attainable but inefficient Innefiency refers to when TB (total benefit) mines TC (tolat cost) is not maximised.
Why in a production possibilities frontier model a point inside the frontier is attainable?
A PPF is the locus of points such that all the economy's resources are used to its fullest potential. A PPF is concave to the origin because of the increasing opportunity cost to produce an additional unit of x (on the horizontal axes). A point inside the PPF is attainable because (1) there may be no full employment or (2) inspite of full employment they are used to less potential. On the contrary a point outside the PPF is not attainable because the PPF itself is the locus of the maximum attainable output given resources, the PPF may however expand due to increase in resources or their efficiency.
Is it constant opportunity cost if it's along the PPF?
Yes, when moving along a production possibility frontier (PPF), the opportunity cost is constant if the PPF is a straight line. This indicates that resources are perfectly adaptable for the production of either good, meaning that the trade-off between the two goods remains the same. However, if the PPF is curved, the opportunity cost is increasing, as resources are not equally efficient in producing both goods.
What is the ppf in investment?
Public Provident Fund or PPF is a scheme that was introduced by the Government of India in the year 1980. Ever since that year, PPF has been a preferred choice for investment for the risk averse investor. Assured and Tax Free Returns make PPF even more attractive. The PPF is just like the regular Provident Fund Account that salaried employees get throughout India. The only difference being, the PPF account can be opened by anyone and contributions can be made as per their preferences. The money saved in the PPF Account is backed by the Government of India and hence it is practically Risk Free. The money in the PPF Account earns interest just like the PF account which will be credited into our account by the Government.
What is PPF?
Public Provident Fund or PPF is a scheme that was introduced by the Government of India in the year 1980. Ever since that year, PPF has been a preferred choice for investment for the risk averse investor. Assured and Tax Free Returns make PPF even more attractive. The PPF is just like the regular Provident Fund Account that salaried employees get throughout India. The only difference being, the PPF account can be opened by anyone and contributions can be made as per their preferences. The money saved in the PPF Account is backed by the Government of India and hence it is practically Risk Free. The money in the PPF Account earns interest just like the PF account which will be credited into our account by the Government.
Why does PPF become a straight line?
The Production Possibility Frontier (PPF) becomes a straight line when the opportunity cost of producing one good over another remains constant. This typically occurs when resources are perfectly substitutable between the two goods, meaning that the trade-off between them doesn't change regardless of the quantity produced. In contrast, a curved PPF reflects increasing opportunity costs, where reallocating resources leads to a less efficient trade-off.
What does ppf stand for?
Public Provident Fund or PPF is a scheme that was introduced by the Government of India in the year 1980. Ever since that year, PPF has been a preferred choice for investment for the risk averse investor. Assured and Tax Free Returns make PPF even more attractive. The PPF is just like the regular Provident Fund Account that salaried employees get throughout India. The only difference being, the PPF account can be opened by anyone and contributions can be made as per their preferences. The money saved in the PPF Account is backed by the Government of India and hence it is practically Risk Free. The money in the PPF Account earns interest just like the PF account which will be credited into our account by the Government.
Why is PPF negatively sloped?
why PPF in economics is negatively sloped
When was PPF - company - created?
PPF - company - was created in 1991.
