Why Is the PPF Curve Bowed Outward?


The production possibility frontier is a term used in economics and goes by names of production- possibility curve, production-possibility boundary or a product trans formative curve. It is a graph that compares the production rate of two commodities that use a fixed total of factors of production. The PPF curve will show the maximum production level of a commodity that shows results that are given by a production level. A PPF bow curved outward is the result of economic concepts such as scarcity of resources, productive efficiency, and economics of scale.
Q&A Related to "Why Is the PPF Curve Bowed Outward?"
When the PPF graph bows outward it usually means that, as the production of one good continues to grow, the opportunity cost of producing another good increases
Assumptions are that an economy has fixed resources, technology etc at the given time period. So as more of one good is produced, the opportunity cost of the other good starts increasing
Production Possibility Frontier is Concave in nature because of the Increasing Marinal Rate of Transformation.It means that the producer at every level has to withdraw more and more
Due to a system issue, I am unable to see your recent history. Plea...
Similar Questions
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2015 Ask.com