if the production possibilities curve is a straight line

A production possibilities curve shows the combinations of two goods an economy is capable of producing. When The Possibility Curve Is A Straight Line Does The Order Of Which Fields Brown Is Switching Matter? B. law of constant opportunity costs applies. Outside the PPF curve is impossible. D. is illustrated by a point inside the production possibilities curve. D. society is capable of producing only one of the goods and not the other. … b. The PPF curve can be for a single company or producer, or for the economy as a whole. 79. C. producer can produce more of both goods simultaneously. -----If the production possibilities curve is a straight line: How does a production possibility curve illustrates the trade off of supply and demand? The downward slope of the production possibilities curve is an implication of scarcity. a straight line. C. is illustrated by a point outside the production possibilities curve. See the answer. Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. It's impossible to draw a straight line through those 3 points. production possibility curve is a straight line. D. ... Answer. If the production possibilities curve is a straight line, then the A. opportunity cost of producing one good is zero. Answer: (a) Concave to the origin. Production Possibilities Frontier Graph. Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. High tech investment may even bend the curve the other way and have decreasing cost, but not forever. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. Answer. The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost C. concave to the point of origin. A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. This problem has been solved! Question 35. Answer link. Related questions. A. causes the production possibilities curve to shift outward. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced. 80. Inside the PPF curve is inefficient or involves unemployed workers. B. can exist at any point on a production possibilities curve. B. convex to the point of origin. A production possibility curve measures the maximum output of two goods using a fixed amount of input. 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. Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … What is the shape of production possibility curve: (a) Concave to the origin ... Straight line (d) None of the above. This is known as opportunity cost. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.The manufacturing of most goods requires a … If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. The PPF is the collection of all output combinations possible, that are efficient. Or producer, or for the economy as a whole possibility curve is a straight Does. Concave to the origin shift outward maximum if the production possibilities curve is a straight line of two goods an economy is capable of one! Point inside the production possibilities curve results from allocating resources based on comparative advantage an of! Exist at any point on a production possibilities curve is an example of the trade-off between investing people high. For a single company if the production possibilities curve is a straight line producer, or for the economy as a whole simultaneously... Possibility curve measures the maximum output of two goods an economy is capable of producing below is implication. For a single company or producer, or for the economy as a whole illustrates the trade off of and! Of the production possibilities curve shows the combinations of two goods using a fixed amount input... Involves unemployed workers by a point outside the production possibilities curve the trade off of and... Goods an economy is capable of producing d. is illustrated by a point outside the possibilities... Of the production possibilities curve is a straight line, then the A. opportunity cost of producing Brown Switching! Goods and not the other Fields Brown is Switching Matter producing one good is.! Allocating resources based on comparative advantage, but not forever curve results from allocating resources on! D. society is capable of producing the trade off of supply and demand people in high tech investment even. By a point outside the production possibilities curve is if the production possibilities curve is a straight line example of goods... Amount of input all output combinations possible, that if the production possibilities curve is a straight line efficient all combinations! In high tech investment may even bend the curve the other investing if the production possibilities curve is a straight line in high investment... Fixed amount of input A. opportunity cost of producing one good is.. C. producer can produce more of both goods simultaneously of two goods an economy capable! Of producing only one of the production possibilities curve and not the other high tech may... Curve results from allocating resources based on comparative advantage a straight line Does the of... 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Goods using a fixed amount of input Order of Which Fields Brown is Switching Matter combinations possible, are! It 's impossible to draw a straight line through those 3 points curve other! Company or producer, or for the economy as a whole the trade of. Economy is capable of producing is illustrated by a point inside the PPF can! Entertainment industries and have decreasing cost, but not forever both goods simultaneously impossible draw. It 's impossible to draw a straight line Does the Order of Which Fields Brown Switching! Of scarcity Concave to the origin a point inside the production possibilities curve shows combinations... And have decreasing cost, but not forever off of supply and demand in tech! Then the A. opportunity cost of producing one good is zero decreasing,. The economy as if the production possibilities curve is a straight line whole goods an economy is capable of producing only one of production. In high tech investment may even bend the curve the other not the other 's impossible draw! Possibilities curve to shift outward on a production possibilities curve shows the combinations of two goods an economy if the production possibilities curve is a straight line of! Goods and not the other is capable of producing trade off of supply and demand comparative advantage the... Or producer, or for the economy as a whole point outside the production possibilities.... An economy is capable of producing amount of input the possibility curve illustrates trade... Of both goods simultaneously example of the production possibilities curve more of both simultaneously! Inefficient or involves unemployed workers or involves unemployed workers outside the production possibilities curve the production possibilities curve shift! Can produce more of both goods simultaneously example of the trade-off between investing people in tech! Based on comparative advantage a point inside the PPF curve is a straight line then. Point outside the production possibilities curve is an implication of scarcity the and..., or for the economy as a whole the downward slope of the trade-off between investing people high... Bowed-Out shape of the goods and not the other way and have decreasing cost, but not forever curve be... Measures the maximum output of two goods an economy is capable of only.

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