Outside the PPF curve is impossible. This problem has been solved! Related questions. 80. A production possibilities curve shows the combinations of two goods an economy is capable of producing. 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. Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. See the answer. … -----If the production possibilities curve is a straight line: How does a production possibility curve illustrates the trade off of supply and demand? D. ... Answer. 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. It's impossible to draw a straight line through those 3 points. This is known as opportunity cost. The PPF is the collection of all output combinations possible, that are efficient. The downward slope of the production possibilities curve is an implication of scarcity. A production possibility curve measures the maximum output of two goods using a fixed amount of input. 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 … B. convex to the point of origin. 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. Answer link. Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. B. law of constant opportunity costs applies. Inside the PPF curve is inefficient or involves unemployed workers. The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost D. is illustrated by a point inside the production possibilities curve. B. can exist at any point on a production possibilities curve. production possibility curve is a straight line. a straight line. b. C. is illustrated by a point outside the production possibilities curve. Answer: (a) Concave to the origin. Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. 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. Question 35. D. society is capable of producing only one of the goods and not the other. 79. The PPF curve can be for a single company or producer, or for the economy as a whole. If the production possibilities curve is a straight line, then the A. opportunity cost of producing one good is zero. Production Possibilities Frontier Graph. A. causes the production possibilities curve to shift outward. Answer. 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