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# Giving Reason Comment on the Shape of Production Possibilities Curve Based on the Following Schedule: - CBSE (Arts) Class 12 - Economics

ConceptConcepts of Production Possibility Frontier

#### Question

Giving reason comment on the shape of production possibilities curve based on the following schedule:

 Good X (units) Good Y (units) 0 8 1 6 2 4 3 2 4 0

#### Solution

Marginal opportunity cost:

 Good X (units) Good Y (units) MOC = "ΔY"/"ΔX" 0 8 - 1 6 2/1 = 2 2 4 2/1 = 2 3 2 2/1 = 2 4 0 2/1 = 2

The above schedule clearly states that the production of Good-X increases from Unit 1 to Unit 2, and correspondingly, the units of Good-Y forgone is 2. With each additional unit of production of Good-X, the amount of Good-Y to be forgone is constant (2). So, because of constant opportunity cost, the production possibility curve (PPC) is a downward sloping straight line.

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Solution Giving Reason Comment on the Shape of Production Possibilities Curve Based on the Following Schedule: Concept: Concepts of Production Possibility Frontier.
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