--%>
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 : Positively sloped supply curve of a

    Can someone please help me in finding out the accurate answer from the following question. According to most conventional theories of labor market: (1) The supply curve of labor is positively sloped as higher salaries attract the extra workers to the labor market. (2)

    		•
  • Q : Horizontal demand curve facing purely

    The demand curve facing a purely competitive firm is: (w) horizontal. (x) vertical. (y) downward sloping. (z) the horizontal summation of individual demand curves. Can someone explain/help me with best solution abo

    		•
  • Q : Problem on Horizontal Integration I

    I have a problem in economics on Horizontal Integration. Please help me in the following question. McDonalds makes hamburgers at a number of various locations. This is an illustration of a: (i) Horizontally integrated firm. (ii) Monopoly. (iii) Vertic

    		•
  • Q : Devaluation and depreciation of

    Distinguish among devaluation and depreciation of domestic currency

    		•
  • Q : Price of Substitute goods What occurs

    What occurs to the demand for a good whenever the price of Substitute goods downs?Answer: Whenever the price of substitute good downs, then the demand for the specified good too downs.

    		•
  • Q : Define Direct taxes Direct taxes :

    Direct taxes: Whenever the liability to pay tax and the burden of that tax fall on similar person, it is termed as direct tax. Illustrations are: wealth tax, income tax, corporation tax, gift tax and so on.

    		•
  • Q : Division of Labor I have a problem in

    I have a problem in economics on Division of Labor. Please help me in determining the right answer from the following question. Shannon brewing an espresso drinks whereas Kelly bakes the croissants at their coffee shop are an illustration of: (i) Comp

    		•
  • Q : Output and price comparison with

    Compared to the output and price which are allocatively efficient by the vantage point of society, in that case a monopolist tends to: (w) produce less and charge a higher price. (x) maximize average profits when possible. (y) set price in the inelast

    		•
  • Q : Maximizing satisfaction In a vague

    In a vague world, people are supposed to maximize their satisfaction through: (1) Finding in advance the mixture of goods which maximizes utility and then purchasing this mixture. (2) The procedure of trial and error. (3) Taking marginal decisions till disutility stop

    		•
  • Q : Open market operation-Deficient demand

    Open market operation signifies to the sale and purchase of securities by the Central Bank in case of deficient demand whenever AD falling short of AS at full employment, the Central Bank purchases securities in open market and makes payment to the se

    		•