because it has increasing opportunity costs
If the opportunity cost is constant, the PPF is a straight line; when the opp. cost of a good rises when it is produced more, then concave.
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.
A Production Possibility Frontier (PPF) is a curved bowed out from the origin. It is mostly 2 dimensional and involving 2 goods or services.
why PPF in economics is negatively sloped
Oh, dude, PPC is concave to the origin because of the law of diminishing returns. As you produce more of one good, you have to give up more and more of the other good, which makes the curve bend inward. It's like when you eat too much pizza and eventually the joy of each additional slice starts to decline.
If the opportunity cost is constant, the PPF is a straight line; when the opp. cost of a good rises when it is produced more, then concave.
The PPF is bowed outwards (concave to the origin) as tradeoffs between the production of any two goods are constant.
maybe
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.
When there are diminishing marginal returns to factors of production, the PPF is "bowed out" from the origin.
A Production Possibility Frontier (PPF) is a curved bowed out from the origin. It is mostly 2 dimensional and involving 2 goods or services.
The word concave is derived from the Latin word concavus, from cavus, meaning cave.
PPF - company - was created in 1991.
why PPF in economics is negatively sloped
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.
Oh, dude, PPC is concave to the origin because of the law of diminishing returns. As you produce more of one good, you have to give up more and more of the other good, which makes the curve bend inward. It's like when you eat too much pizza and eventually the joy of each additional slice starts to decline.
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