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.

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.

View Complete Question

Related Questions in Microeconomics

Q : Condition for deficit in balance of

What is the condition when there is a deficit in balance of trade? Answer: When import > export

Q : Process of Screening Can someone help

Can someone help me in finding out the right answer from the given options. The principal who observes the qualifications of a potential agent prior to offering the agent a contract is engaging in the procedure of: (1) Signaling. (2) Finding out an efficient wage. (3)

Q : Problem regarding Subjective Prices

Mike trades 6 vintage baseball cards for the Jake’s original Ty Cobb card. When Mike’s six cards had equivalent total market value with Jake’s Ty Cobb card, then this trade would show: (i) Unfair incentive. (ii) Demand price. (iii) Opportunity cost.

Q : Negatively-sloped demand curve for

A firm which cannot price discriminate although which faces a negatively-sloped demand curve for output: (1) has a marginal revenue curve which is always below which demand curve. (2) will never knowingly produce at a level of output where the price e

Q : Determine water elasticity of production

When 200,000 gallons of water are applied per acre, 4 tons are harvested by each acre of linguini trees yearly, but cutting back to 160,000 gallons causes the crop per acre to reduce to 2 tons yearly. Then water elasticity of linguini production is as

Q : Problem relating to Exploitation I have

I have a problem in economics on Problem concerning Exploitation. Please help me in the given question. Whenever resource suppliers are salaried less than the values of their marginal products [or VMPs], then they are stated to be: (p) Monopsonistic. (q) Monopolistic.

Q : Types of output for producing goods

Kinds of output subsequently used to generate other goods are termed as: (w) land. (x) labor. (y) capital. (z) primary resources. Hey friends please give your opinion for the problem of Eco

Q : Occurrence of increase in supply in

In short run, the increase in supply takes place whenever the: (1) Supply curve shifts upward and to left. (2) Preferences of consumers change in a positive direction. (3) Market price raise. (4) Amounts producers make accessible rise at each and every price. (5) Publ

Q : Ordinal utility In economics, what is

In economics, what is ordinal utility and what are its assumptions

Q : Measurement of income elasticity of

The income elasticity of demand is a measure of the receptiveness of: (w) demand to changes in income. (x) extra national income as Aggregate Demand grows. (y) supply curves to changes in demand. (z) price to changes in income.

Discover Q & A

Leading Solution Library

Avail More Than 1415793 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1951995
Asked

3,689

Active Tutors

1415793

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment