Why ppc curve is downward?

Question

Answer

PPC is downward sloping because, production of both the goods (X &Y) cannot be increase Simultaneously. Because of  resources are fixed & fully utilise, so if you want to produce more unit of one good(X)  than you must be sacrifice the production of other good(y) .

Answer

PPC slopes down from  left to right. It is because in a situation of fuller and double utilisation of the given resources,  production of both the goods cannot  be increase more of goods -X can be produced only with less of good -Y

Answer

PPC or the production possibility curve slopes downwards due to the negative relationship between the resources. To produce more of one good the production of the other good must be reduced and this happens due to scarcity of the resources. Production of Both the commodities cannot be increased.

Answer

Negatively sloped as to increase the production of one good, a sacrifice has to be made by decreasing the production of the other good

Answer

Introduction
The production possibility curve (PPC) represents the maximum output of two goods that an economy can produce with its available resources and technology. PPC is also known as the production possibility frontier (PPF) and it is downward-sloping.

Explanation
The PPC is downward-sloping because of the concept of opportunity cost. Opportunity cost is the cost of choosing one option over the other. In other words, it is the benefits that are foregone when one alternative is selected over the other. The PPC shows the tradeoff between two goods that an economy can produce with its limited resources.

Opportunity Cost
The concept of opportunity cost can be explained with the help of an example. Suppose an economy can produce two goods, guns, and butter. If all the resources are used to produce guns, then the economy can produce a certain amount of guns. However, if the same resources are used to produce butter, then the economy can produce a certain amount of butter. This is the opportunity cost of producing guns.

Efficient Production Possibility Curve
An efficient PPC shows that the economy is producing the maximum output of two goods with its available resources and technology. The efficient PPC is also known as the production possibility frontier (PPF). The PPF is downward-sloping because the opportunity cost of producing more of one good is the production of less of another.

Conclusion
In conclusion, the PPC is downward-sloping because of the concept of opportunity cost. The opportunity cost of producing more of one good is the production of less of another. Therefore, an economy has to make choices and tradeoffs when it comes to producing goods and services. The efficient PPC shows that the economy is producing the maximum output of two goods with its available resources and technology.

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