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Because in a convext towards origin curve as you move towards that good, you need to give up more of the other good.
Or closer to center, to produce 5 more Bus, you need to give up 4 trucks.
But when it's closer to the x(bus) axis, to produce 1 more bus, you need to give up 8 trucks (or the y value falls faster.)
=> There are more opportunity cost involved.
What else can I help you with?
Why is product possibility curve linear?
The production possibility curve is not always linear, in fact, it is usually concave down (bowed-in). The shape of the curve depends on the substutability of the goods described by the curve in the question. When goods are perfectly substitutable in production, the PPP (or PPF) is linear.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
What is the Importance of production possibility curve?
Importance of production possibility curve in allocation resources
What are other names of production possibility frontier?
production possibility curve
What are the features of a normal production possibility curve?
Production Possibility curves can assume different slopes. As far as i know it can be either concave, convex or a straight line. The concave curve would be concave and downward sloping.This is explained by the law of diminishing returns and that factors used are not homogeneous.In this case the Marginal Rate of technical substitution would be rising. The curve would be convex in case of rising productivity and decreasing opportunity cost. Finally it would be a straight line when factors are homogeneous. Hope it was helpfull. Akheel.
Why is product possibility curve linear?
The production possibility curve is not always linear, in fact, it is usually concave down (bowed-in). The shape of the curve depends on the substutability of the goods described by the curve in the question. When goods are perfectly substitutable in production, the PPP (or PPF) is linear.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
What are the other names for production possibility curve?
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
What is the Importance of production possibility curve?
Importance of production possibility curve in allocation resources
Why a production possibility is concave?
A production possibility curve is concave because of the law of diminishing returns. As more resources are allocated to one good over the other, the opportunity cost increases, which leads to decreasing marginal rates of substitution. This results in a concave curve that shows the trade-off between producing different goods.
What are other names of production possibility frontier?
production possibility curve
What are the features of a normal production possibility curve?
Production Possibility curves can assume different slopes. As far as i know it can be either concave, convex or a straight line. The concave curve would be concave and downward sloping.This is explained by the law of diminishing returns and that factors used are not homogeneous.In this case the Marginal Rate of technical substitution would be rising. The curve would be convex in case of rising productivity and decreasing opportunity cost. Finally it would be a straight line when factors are homogeneous. Hope it was helpfull. Akheel.
What does the production possibilities curve describes?
The production possibility curve is an analytical tool that is u to explain,analyse and justify the problem as regards the choices in the allocation of productive resources to achieve a given level of output in an hypothetical way. It is based on a short run period is production where some factors are held constant and the otthers can be varied to achieve a given level of output. The production possibility curve explains the rate of transformation between commodity (x and y) when the level of productive resources is given.the slope of the curve is concave to the origin and it touches both axis. The production possibility curve is also called production frontier or production boundary.
Point F violates which assumption of the Production Possibility Curve?
Point F violates the assumption of the production-possibility curve that resources and technology are not fixed. The curve is sometimes referred to as the productionâ??possibility frontier.
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
How does the Production Possibility Frontier illustrate scarcity?
Scarcity, on a PPC (PPF) is implied by the bowed (concave-down) shape of the curve, since there is a restriction on how much can be produced and, to get more of something, one must give away something else.
Why is Production Possibility Curve concave to the origin?
I have never heard that the demand curve must be concave. In fact, it is most often modeled as either linear or convex. Common convex specifications include log-linear and constant-elasticity demand functions. A number of empirical papers attempt to estimate the shape of the demand curve for specific products but I am not familiar with anyone concluding that demand is concave generally.
