Properties of production possibilities curve
Describe properties of the production possibilities curve.
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There are two main properties of production possibilities curve.
1. Downward sloping: This is since as more quantity of one good produced few quantity of the other good which must be sacrificed.
2. Concave to the origin: This is since the marginal rate of transformation rises as more of one good is generated.
Indifference curve: It is the combination of two goods that provides consumer similar level of satisfaction.
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