The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost Outside the PPF curve is impossible. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. … Question 35. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.The manufacturing of most goods requires a … Inside the PPF curve is inefficient or involves unemployed workers. A production possibilities curve shows the combinations of two goods an economy is capable of producing. The PPF is the collection of all output combinations possible, that are efficient. A production possibility curve measures the maximum output of two goods using a fixed amount of input. Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. Related questions. If the production possibilities curve is a straight line, then the A. opportunity cost of producing one good is zero. C. is illustrated by a point outside the production possibilities curve. C. producer can produce more of both goods simultaneously. The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. C. concave to the point of origin. a straight line. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced. b. A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. What is the shape of production possibility curve: (a) Concave to the origin ... Straight line (d) None of the above. How does a production possibility curve illustrates the trade off of supply and demand? The downward slope of the production possibilities curve is an implication of scarcity. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. Answer. Answer link. If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. This problem has been solved! High tech investment may even bend the curve the other way and have decreasing cost, but not forever. D. is illustrated by a point inside the production possibilities curve. Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … Production Possibilities Frontier Graph. 80. B. convex to the point of origin. This is known as opportunity cost. It's impossible to draw a straight line through those 3 points. D. society is capable of producing only one of the goods and not the other. B. law of constant opportunity costs applies. 79. See the answer. D. ... Answer. Answer: (a) Concave to the origin. production possibility curve is a straight line. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. When The Possibility Curve Is A Straight Line Does The Order Of Which Fields Brown Is Switching Matter? Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. A. causes the production possibilities curve to shift outward. -----If the production possibilities curve is a straight line: The PPF curve can be for a single company or producer, or for the economy as a whole. 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