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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.
What else can I help you with?
Why is the ppf concave to the origin?
because it has increasing opportunity costs
What does a linear ppc curve imply about opportunity costs and inputs to production?
A linear production possibility curve (PPC) implies constant opportunity costs, meaning that the trade-off between two goods remains the same regardless of how much of each good is produced. This suggests that the inputs to production can be easily substituted for one another without losing efficiency. In contrast to a concave PPC, which indicates increasing opportunity costs, a linear PPC reflects a scenario where resources are perfectly adaptable for producing either good.
What is the most common shape of a production possibility curve Explain why this is so?
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.
Assume that a change in government policy results in greater production of both consumer goods and investment goods?
this economy's ppc is convex to the origin
Why is ppc convex to origin?
because all factors of production cannot be equally efficiently be used to produce one product than the other...
How does PPC graph of unemployment looks like?
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.
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.
The ppc is concave to the point of origin?
A production possibility curve (PPC) that is concave to the origin illustrates the concept of increasing opportunity costs. As production shifts from one good to another, the resources are not perfectly adaptable, leading to a greater sacrifice of one good for each additional unit of the other good produced. This shape reflects the reality that some resources are better suited for the production of specific goods, resulting in diminishing returns as more of one good is produced. Thus, the concave shape signifies the trade-offs faced in resource allocation.
What is the origin of the word concave?
The word concave is derived from the Latin word concavus, from cavus, meaning cave.
Why is the ppf concave to the origin?
because it has increasing opportunity costs
What is the implication when ppc being concave?
When a production possibilities curve (PPC) is concave, it implies that as the economy moves from producing more of one good to producing more of the other, the opportunity cost of producing each additional unit increases. This suggests that resources are not equally productive in producing different goods, leading to diminishing returns. It also indicates that the economy is operating under the conditions of scarcity and trade-offs.
What condition must exist for the production possibilities curve to be concave to the origin?
A production possibilities curve (PPC) is concave to the origin when the opportunity cost of producing one good increases as more of that good is produced. This typically occurs due to the law of increasing opportunity costs, which suggests that resources are not perfectly adaptable for the production of different goods. As production shifts from one good to another, increasingly less efficient resources must be utilized, leading to a bowed-out shape of the curve. This reflects the trade-offs and the diminishing returns associated with reallocating resources.
Why is a star polygon concave?
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
What does ppc on gold jewelry mean?
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.
What is 'ppc' trademark printed on the jewerlry means?
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.
What does a linear ppc curve imply about opportunity costs and inputs to production?
A linear production possibility curve (PPC) implies constant opportunity costs, meaning that the trade-off between two goods remains the same regardless of how much of each good is produced. This suggests that the inputs to production can be easily substituted for one another without losing efficiency. In contrast to a concave PPC, which indicates increasing opportunity costs, a linear PPC reflects a scenario where resources are perfectly adaptable for producing either good.
What is the most common shape of a production possibility curve Explain why this is so?
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.
