Question

Describe the shape of the typical production possibitties curve and explain why it has this shape.

Answer 1

PPC is a curve that shows various combinations of two commoditites that a consumer can consume with given resources and technologies effectively and effeciently utilized.

shape of a typical ppc is concave to the origin and downward sloping,

this is because as we keep on producing more of one good we have to sacrifice more and more of other good because as inputs are assumed to be fixed thus when we produce more of a good less of inputs will be left for the production of other good.