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प्रश्न
Giving reason, comment on the shape of Production Possibilities curve based on the following schedule:
| Good X (units) | 0 | 1 | 2 | 3 | 4 |
| Good Y (units) | 8 | 6 | 4 | 2 | 0 |
संख्यात्मक
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उत्तर
\[ \text{MOC}=\frac{\text{Loss of Good Y}}{\text{Gain of Good X}} \]
|
Good X (Units) |
Good Y (Units) |
MOC |
|---|---|---|
|
0 |
8 |
– |
|
1 |
6 |
2 |
|
2 |
4 |
2 |
|
3 |
2 |
2 |
|
4 |
0 |
2 |
As the production of Good X increases by one unit, the production of Good Y decreases by 2 units each time. Thus, MOC remains constant at 2 units.
Therefore, the PPC will be a downward-sloping straight line due to constant MOC.
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