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Question: Why is the slope of a production posibility curve concave to the origin? Explain with an example

Posted by: Kavindu on 27.04.2021

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Answer:

Production possibility curve/ production possibility frontier refers the combination of two products by combining themselves increase of on item will reduce the another item. AS It originates from the beginning /starts from o it is called concave to the origin.

Answer:

The slope of PP curve is concave to point of origin because to produce an additional unit of X, more and more units of Y need to be sacrificed. It is due to increasing MOC.

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