A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. ... PPC is concave shaped because more and more units of one commodity are sacrificed to gain an additional unit of another commodity. The PPF simply shows the trade-offs in production volume between two choices. Some parts slope up and some parts slope down; it depends on the countries used to make the frontier. The production possibilities curve is also called the PPF or the production possibilities frontier. In the section of the curve shown here, the slope can be calculated between points B and B′. E Upward-sloping Production Possibilities Curve. Moving along the production possibilities curve, the slope becomes steeper (that is, the absolute value of the slope increases), reaching a value of -200 (an absolute value of 200) between points J and K. This reflects an increasing opportunity cost of producing storage sheds, resulting in a convex shape for the production possibilities curve. The production possibility curve also shows the choice of society between two different products. Question: A realistic production possibilities curve: (a) is more concave than one assuming increasing opportunity costs. As far as i know it can be either concave, convex or a straight line. It is a wiggly line or bent line which wiggles or bends to join any two points on a graph or a map. This problem has been solved! The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. 1 Explain Why A Production Possibilities Curve Is Concave Explain how production possibility curves can be used to demonstrate the problem of unemployment, effects of technological change and the benefits of economic growth Human wants are unlimited and resources are scarce. A production possibility curve (PPC) is concave because the marginal cost of production increases as production increases. The law of increasing opportunity cost states: as the production of one good rises, the opportunity cost of producing that good increases. The law of increasing opportunity cost is reflected in the shape of the. The production possibilities curve is also called the production possibility frontier, because any point beyond the curve represents an impossible situation. D Straight- Line Production Possibilities Curve. A production possibilities curve outlines the relationship between a company’s choices in the production of two items. PPC is concave to the origin because of increasing Marginal opportunity cost. This production possibility table shows the opportunity cost of each production choice. Answer (1 of 1): Holding the stock of resources and technology constant (ceteris paribus) , the law of increasing opportunity cost causes Production possibility curve to display concave to the origin (bowed -out shape)regards, deepa We know, PPF is concave shaped curve. convex to the point of originc.concave to the point of origind. It specifies the alternative outputs that can be achieved with different levels of inputs. For example MRT between the possibilities D and E is equal to DH/HE and between E and F, it is equal to EI/IF and so on. It means the slope of the production possibility curve or opportunity cost curve is the same and it is a negatively sloping straight line. As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed. That is, as we move down along the PPC, the opportunity cost increases. There are 3 types of production possibility curve which are straight-line sloping down, concave and convex curve. If the curve bends inward, it will look more like a smile ⁠— That would be a convex curve. bowed outward away from the origin.C. Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. A production possibilities boundary (or production possibilities frontier/curve) is a curve that shows which alternative combinations of commodities can be attained if all resources are used efficiently. Originc.Concave to the inadaptability of the resources 2: an isoquant curve, of... 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