WebbWhy is the PPF bowed outward? The short answer is: increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities. ...The more we produce of either good, the less productive are the additional resources we use and the larger is the opportunity cost of one unit of that good. WebbThe PPF between goods X and Y will be a downward-sloping... curve that is bowed outward. If it is impossible to produce more of one good without getting less of another …
Department of Economics Prof. Kenneth Train University of …
Webb17 juli 2024 · The short answer is: increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities. People with many years … Webbminimum output that can be produced when resources are used inefficiently. boundary between the combinations of goods and services that can be produced and the … binky diabetic list canned cat food
Chapter 2: Production Possibilities Frontier Framework
WebbLesson 5: The law of increasing opportunity cost: As you increase the production of one good, the opportunity cost to produce the additional good will increase. First, remember that opportunity cost is the value of the next-best alternative when a decision is made; … WebbThe Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources … Webb8 dec. 2024 · Economic growth shifts the PPF outward. The Shape of the PPF The PPF could be a straight line, or bow-shaped Depends on what happens to opportunity cost as economy shifts resources from one industry to the other. If opp. cost remains constant, PPF is a straight line. (In the previous example, opp. cost of a computer was always 10 … dachshund suddenly can\\u0027t use back legs