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.
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
Importance of production possibility curve in allocation resources
production possibility curve
Production Possibility Curve this is an image of a ppf/ ppc
it can not
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
Importance of production possibility curve in allocation resources
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.
Production Possibility Curve this is an image of a ppf/ ppc
it can not
It is an unreachable possibility.
In economics when the product possibility curve moves left it shows in decrease in production possibility. Why? try to figure it out, it helps in understanding. Peace out.
a movement of the production point closer to the curve
Diminishing Marginal returns to capital and labor.
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.