when is production possibility curve convex to the origin?

Question

when  is production possibility curve convex to the origin?

Answer

vansh when MRT increases i.e more and more units of one commodity are sacrificed to gain an additional unit of another commodity then only ppc will be concave to the origin n when MRT decreases then ppc is convex to the origin.

Answer

ya sure vansh to understand this lets take an example you are about to produce 10000 units of food against an estimation of 5000 units of cloth.But unfortunately u have only 4000 units of cloth to forgo it proportionally.Further even when the opportunity cost is zero,u will continue to produce more units of food may be by the introduction of another commodity.This will lead the ppc to be convex to the origin.Hope now your doubt has been clear and if u dont understand this you can ask without hesitation.

Answer

when MOC decrease the slope of PPC is convex to the point of origin

Answer

Introduction:
The production possibility curve (PPC) is a graphical representation that shows the maximum possible combination of goods and services that an economy can produce using its given resources and technology. It illustrates the concept of trade-offs and opportunity costs.

Definition of Convexity:
Convexity refers to the shape of the production possibility curve. A PPC is convex to the origin when it is bowed outwards, meaning the curve is curved away from the origin. This convex shape indicates increasing opportunity costs as more of one good is produced.

Reasons for Convexity:
The production possibility curve is convex to the origin due to several factors:

1. Law of Increasing Opportunity Cost: The law of increasing opportunity cost states that as the production of one good increases, the opportunity cost of producing an additional unit of that good also increases. This is because resources are not perfectly adaptable to producing different goods. As more resources are allocated to one good, resources less suited for its production must be used, resulting in a higher opportunity cost.

2. Diminishing Marginal Returns: The concept of diminishing marginal returns also contributes to the convex shape of the PPC. As more resources are allocated to the production of a specific good, its marginal output starts to decrease. This means that each additional unit of resources added to the production of that good results in a smaller increase in output.

3. Specialization and Comparative Advantage: Specialization occurs when resources are allocated to the production of goods based on comparative advantage. Comparative advantage refers to the ability of a country or individual to produce a good at a lower opportunity cost than others. When resources are specialized, they become more efficient in producing a particular good, leading to increasing opportunity costs if they are diverted to the production of another good.

Visual Representation:
To visually represent the convexity of the production possibility curve, imagine a graph with two goods, X and Y, on the x-axis and y-axis respectively. The curve begins concave to the origin, indicating low opportunity costs. As we move along the curve, the PPC becomes more convex, illustrating increasing opportunity costs.

Conclusion:
The convex shape of the production possibility curve demonstrates the concept of increasing opportunity costs. It highlights the trade-offs that must be made when allocating resources between different goods and services. Understanding the convexity of the PPC is crucial for decision-making and resource allocation in an economy.

Answer

ppf can be convex to the origin if when MRT is decreasing i.e less and less unit of a commodity are sacrificed to gain an additional unit of another commodity.In such cases ppf will be a convex shaped curve.

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