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Shanu posted an Question
September 02, 2020 • 22:49 pm 75 points
  • UGC NET
  • Economics

What are the properties or shape of production possibility curve

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    Nidhi taparia best-answer

    The production possibility curve (PPC) is the collection of all combinations of two goods in various quantities that can be produced utilising completely all the resources available at given level of technology. The shape of PPC is downward sloping concave usually. 1. Downward sloping means more of one good can be produced only when the production of other good is reduced. This is because resources are constant. 2. Concavity means the rate of change of slope is decreasing. This means that greater quantity of Good Y will have to be sacrificed to produce every successive unit of Good X.

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