Explain properties of a production possibilities curve.

Explain properties of a production possibilities curve.

Introduction to Economics Economics Class 12 CBSE Value Based Questions

Rajendra
Jul 24, 2020
1 Answers

Answers

Ashok Kumar Khushu

Jul 29, 2020

There are two properties of a production possibilities curve.

Downward sloping : It is because as more quantity of one good is produced some quantity of the other good must be sacrificed.
Concave to the origin : It is because the marginal rate of transformation increases as more of one good is produced.

How to Earn Points?