The PPC / PPF is concave to the origin because not all resources are perfectly suited to the production of both goods. This leads to increasing opportunity costs caused by diminishing returns. So as more and more resources are switched from the production of one good to the production of another good, returns diminish. This is the law of diminishing returns. This law is identified by the PPC being concave.
As an example, consider production of root beers to mountain bikes. When most workers are making bikes, the few remaining in brewing buisness are the best brewers. If more bikes are to be produced, then the most skilled beer workers have to be shifted to bike manufacturing, thereby affecting the amount to beer significantly.
A concave PPF is generally applicable in cases where the production requires specialization and varied raw products (eg. guns and butter as given on wikipedia.) In cases of similar goods, it is generally a straight line, eg. production of cakes and pastries.
because it has increasing opportunity costs
this economy's ppc is convex to the origin
because all factors of production cannot be equally efficiently be used to produce one product than the other...
The most common shape of a Production Possibility Curve (PPC) is a concave bulging in towards the origin (or a quarter circle from one axis to the other.) This is due to the fact that as the production in one goods increase, the opportunity cost of producing the extra of that good (or the amount of Good B that it has to give up) become less.
Unemployment itself is one of the factors as to why the Production Possibility Curve (PPC) is what it is - a frontier where production cannot occur outside of. If unemployment increased, you would see decreases of the the PPC at any given point, that is, closer to the origin.
There is no shift in the PPC.Only a dot is marked within the curve(Not on the curve) in the exact center of the two axes.The shape of the 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.
The word concave is derived from the Latin word concavus, from cavus, meaning cave.
because it has increasing opportunity costs
PPC is a makers mark, identifying who made the item. I have not been able to identify the maker it is used by, though, and would require further info on the origin of the piece in question to learn more. PPC stands for Princess Pride Creations out of Chicago, IL.
because the point of origin would be on an outer point and around it the walls seem to cave in making it seem concave, in comparison to a regular polygon. When checking for concave polygons always compare what you are looking at to a regular polygon
PPC is a makers mark, identifying who made the item. I have not been able to identify the maker it is used by, though, and would require further info on the origin of the piece in question to learn more. PPC stands for Princess Pride Creations out of Chicago, IL.
this economy's ppc is convex to the origin
because all factors of production cannot be equally efficiently be used to produce one product than the other...
The most common shape of a Production Possibility Curve (PPC) is a concave bulging in towards the origin (or a quarter circle from one axis to the other.) This is due to the fact that as the production in one goods increase, the opportunity cost of producing the extra of that good (or the amount of Good B that it has to give up) become less.
Unemployment itself is one of the factors as to why the Production Possibility Curve (PPC) is what it is - a frontier where production cannot occur outside of. If unemployment increased, you would see decreases of the the PPC at any given point, that is, closer to the origin.
concave