--%>
Assignment Help - homework help

Explain Production Possibility curve

Elucidate Production Possibility curve with the help of a diagram?

Answer: The Production Possibility Curve refers to a curve that shows various production possibilities which can be produced with specified resources and technology.

920_PPC.jpg

When the economy devotes all its resources to the production of commodity B, it can generate 15 units however then the production of commodity A will be zero. There can be much production possibilities of commodity A & B. When we want to generate more commodities B, we have to decrease the output of commodity A and vice-versa.

   Related Questions in Microeconomics

  • Q : Monopsonistic Exploitation problem In

    In equilibrium for the firm with power to adjust the salary it pays, then the rate of monopsonistic exploitation equivalents any difference among: (i) VMP and MFC. (ii) MRP and MFC. (iii) P and MC. (iv) MRP and w. (v) MR and w. Fin

    		•
  • Q : Change in the price of a resource A

    A change in the price of a resource will cause a modification in the: (w) demand for the resource. (x) supply of the resource. (y) quantity demanded of the resource. (z) demand for the good the resource produces. H

    		•
  • Q : When market for a good is in equilibrium

    Whenever the market for the good is in equilibrium, this signifies that the: (i) Demand and supply are equivalent. (ii) Tax wedge is perfectly offset by the government advantages. (iii) Differences among demand prices and supply prices equivalent profit per unit. (iv)

    		•
  • Q : Define abnormal profit Abnormal profit:

    Abnormal profit: It is the gain earned over and above the normal profit.

    		•
  • Q : Price taker and a quantity adjuster

    When the world price for this year’s wheat crop is $10 per bushel, and Del, a profit maximizer one who owns the biggest wheat farm within North Dakota: (i) is a quantity taker and a price adjuster. (ii) cannot generate an economic profit into th

    		•
  • Q : Problem on Efficiency Wage I have a

    I have a problem in economics on Efficiency Wages problem. Please help me in the following question. The Efficiency wages: (i) do not maximize firm profit. (ii) Cause involuntary unemployment. (iii) Are paid due to adverse selection. (iv) Are never se

    		•
  • Q : Consumer behaviour Graphical

    Graphical representation of relationship between MPC and multiplier?

    		•
  • Q : Break-even on profit-maximizing strategy

    Robomatic Corporation would exactly break-even upon its RoboMaids when, instead of exactly identifying its profit-maximizing strategy, this: (i) operated at point i, charging only $10,000 per unit and producing 16,000 robots. (ii) pri

    		•
  • Q : Economic profit generating purely

    In this illustrated figure in below the only purely competitive firm currently generating economic profit is in: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D.

    Q : Percent of interest rate for the price

    When the Bank of England issues perpetuities which pay of £100 yearly, forever, beginning one year by today, in that case at an interest rate of 5 percent the price of that bonds is: (1) £9,500. (2) £5,000. (3) £2,000. (4) &pou

    		•