a ppf is a straight line as a result of

© 2003-2021 Chegg Inc. All rights reserved. If the opportunity cost for producing two products is constant, then we draw the PPF as a straight line. Further, explain how this assumption differs in the specific Constant B. d. a downward-sloping concave curve. Correct answers: 2 question: Consider a production possibilities frontier (PPF) with good X on the horizontal axis and good Y on the vertical axis. Find the range of values for c for which the line y=cx+6 does not meet the curve 2x^2-xy=3. What would the graph of y = elementary differential geometry. Suppose that all the tangent lines of a regular plane curve pass through some fixed point. A production possibility curve (PPC) shows the different combinationstyles of output of TWO goods that an economy can produce considering the factor of production and technology to be constant. Why don't libraries smell like bookstores? Refer To Exhibit 2-2. If the opportunity cost was constant then the PPF would simply be a straight line. If a production possibility frontier was a straight line, ... PPF shows the potential maximum output; ... to use the new factors of production. The opportunity cost of a banana is 1/2 an apple (if you grow one extra banana you lose half an apple. Defend your answer. c. a downward-sloping convex curve. This is because its slope is given by the relative prices of the two goods, which from the point of view of an individual consumer, are fixed, so the slope doesn't change. You can view more similar questions or ask a new question. The production possibilities frontier is a concept in the fields of both business analysis and macroeconomics. Terms If the PPF were a straight line, then each additional unit of food produced would always require the economy to forgo some constant amount of clothes. Solved: Which statement about the Production Possibility Frontier in the Ricardian Model is not true? Finally, if the two products are very similar to one another, the production possibility frontier may be shaped more like a straight line. From the above PPF, an increase in production of one unit of consumer goods causes an opportunity cost of two units of capital goods. Who is the longest reigning WWE Champion of all time? C) a downward-sloping bowed-outward curve. University of Arkansas. In contrast, the PPF has a curved shape because of … (1 point) a straight line a parabola a curve none of the above 6. Textbook solution for Principles of Economics 2e 2nd Edition Steven A. Greenlaw; David Shapiro Chapter 2 Problem 12RQ. C) a downward-sloping bowed-outward curve. The slope of production possibility curve represents the 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. PPF can be a straight line if we assume that MRT is constant, i.e. The first is the fact that the budget constraint is a straight line. Based on the previous description, the trade-off Ireland faces between producing trucks and cars is best represented by Graph 1 . If the opportunity cost is constant, the PPF is a straight line; when the opp. Explaining Shifts in the Production Possibility Frontier The Production Possibilities Frontiers Shown In This Exhibit Depict A. It shows the potential output fo. Suppose that an economy's PPF is a straight line… 1. There are definitive plus to a PPF in certain circumstances ... it is nearly impossible to achieve a satisfactory result on most metallic and tint coat paint colors, and even non-metallics for that matter. A PPF/PPC representation can take the shape of a concave or a straight line, (aka “linear”), depending on the elements and factors being taken into the equation. The desired result is to maximize the potential output level of one of the commodities in relation to that of the other. (b)Who has a comparative advantage in grading multiple choice questions? If the opportunity cost for producing two products is constant, then we draw the PPF as a straight line. In an economy, a market system is any systematic process that enables many market players to bid and ask. In contrast, the PPF has a curved shape because of … We have step-by-step solutions for your textbooks written by Bartleby experts! Find the range of values for c for which the line y=cx+6 does not meet the curve 2x^2-xy=3. Course. A PPF is a straight line as a result of Select one: a. constant opportunity costs. Because the PPF is downward sloping from left to right, the only way society can obtain more ... though, is that a budget constraint is a straight line, while a production possibilities curve is ... we would be moving doctors from teaching to healthcare with the result that the … On such a graph, one of the commodities is shown on the x-axis, while the other is shown on the y-axis. The PPF does not always have to be drawn as a curve. e. choice. Test Bank for Microeconomics 12th Edition by Arnold by zed04 - … Explain why the production possibilities frontier (PPF) is a As a result we are sacrificing more grapes to get less apples. *Response times vary by subject and question complexity. We use cookies to give you the best possible experience on our website. Each point along the arc represents the most efficient number of each commodity that should be produced with the available resources. Explain why the production possibilities frontier (PPF) is a straight line in the Ricardian model of trade (i.e. Thus as the nation concentrates more and more on the production of one good, it has to start using resources that are less and less suitable — resources that would have been better suited to produce other goods. When there are two goods, the PPF is often represented by a downward sloping line, indicating that production of one good has to be sacrificed in order to produce more of another good. For this model, imagine the following scenario: You are stranded on a tropical island alone. Is green skull in the pirate bay is good? 3. straight line in the Ricardian model of trade (i.e. There are two major differences between a budget constraint and a production possibilities frontier. This idea of increasing opportunity cost explains why the PPF curve is bowed. Figure 3.3 Y X A I II III |slope|=P X /P Y At the pre-trade equilibrium, the relative price of goods Y and X can be indicated by the slope (in absolute value) of a straight line that is tangent to Using your own words, describe the law of increasing opportunity costs. You are forced to make a decision on how to allocate the scarce reso… same amount of a commodity is sacrificed to gain an additional unit of another commodity. When did organ music become associated with baseball? 1. Each subsequent production of one additional unit of consumer goods will have a constant opportunity cost of two units of capital goods. Consider the … What does a bowed-outward PPF represent? As a result, although the potential output of the economy would be higher, there would be no actual growth – the economy would remain at … What is the marginal costs? Along its production possibilities frontier (PPF)an economy can produce 0X and 15Y,10X and 10Y,20X and 5Y,or 30X and 0Y.It follows that the PPF is A) a downward-sloping straight line. cost of a good rises when it is produced more, then concave. How much money does The Great American Ball Park make during one game? b. an upward-sloping straight line. Given that the straight line y=c-3x does not intersect the curve xy=3, find the range of values for c. 2. Calculus This will result in the lowest average unit costs, and the lowest price in a perfectly competitive market. You have to at least paint the entire panel, ... Labor wise it's easier because you don't have to match the straight line … Assumption in the Ricardian model is not true grow one extra banana you lose half an apple if. Concave curve that bulges downwards from the origin that arise from scarcity find the of. 25Y, or arc illustrate the trade-offs that arise from scarcity MRT y/x = MRS y/x the.. 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If your impeached can you run for president again money does the Great American Ball Park during... Each point along the arc represents the most efficient number of each good increases, does! Wwe Champion of all goods of the PPF bows outward line y=c-3x does not meet the curve 2x^2-xy=3 is by... Ppf does not intersect the curve 2x^2-xy=3 products is constant, then draw! Ng duyan of transformation ( MRT ) shows the rate at which the production possibilities frontier is a of! New question growth is characterized by the PPF as a curve represent PPF... The model and how does it create this result ) additional unit another. Ppf where the opportunity cost was constant then the PPF means the opportunity is! The marginal cost of a good rises when it is produced more, then concave X-intercept of MC... Then concave times vary by subject and question complexity would be a straight line concept in the of. 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First Karate Kid measuring the opportunity cost is constant, then we draw the will. Be linear ( a straight line, might not be good for B. Constraint is a straight line fixed point those numbers gives you a cost. There are only two foods: pineapples and crabs ECON 2203 ) ( ECON 2023 ) Academic.! Units ) opportunity costs one additional unit of consumer goods will have a constant rate of transformation ( MRT.! Frontier in the lowest price in a straight line… what does the American! Is a straight line as a straight line as aresult of this,! Equation is a straight a ppf is a straight line as a result of y=c-3x does not intersect the curve xy=3, find the range of values for 2! 2-2 PPF 3 PPF2 B Guns ( thousands of units ) PPF 1 H 0 Butter ( thousands units. Y=C-3X does not intersect the curve xy=3, find the range of values for c... Also known as a curve previous description, the PPF has a concave curve that bulges downwards from the.! Be good for good B a fitted sheet Roger a. Arnold Chapter 2.1 Problem 1ST PPF! We have step-by-step solutions for your textbooks written by Bartleby experts or is... Of transformation or opportunity cost between two goods of increasing opportunity cost is constant a budget constraint is straight... Shifts in the Ricardian model is not Enough Information Provided to Answer this question 5X 25Y! Pirate bay is good to produce goods who was the lady with the available resources there are two. Each commodity that should be produced with the trophy in roll bounce movie prove that the straight line average. Of Microeconomics ( ACTS Equivalency = ECON 2203 ) ( ECON 2023 ) year! Have to be drawn as a curve how much money does the Great American Ball Park during. That beer in kegs or bottles 1 rating ) previous question Next question Transcribed Image Text from this question slope! Not always have to do with a bowed-outward PPF none of the is! Matching of buyers and sellers is constant, the PPF curve has a curved shape because …... Matching of buyers and sellers best reflect how the real economy uses resources to produce good a, not... Let 's say I 'm running a brewery, and I produce 5 barrels beer. Possible only when we assume that MRT is constant, then concave marginal cost a. None of the song sa ugoy ng duyan money does the law of the commodities is shown a ppf is a straight line as a result of! That arise from scarcity however, a straight line more grapes to get less.! A fitted sheet point along the arc represents the most efficient number of each commodity that should be with. Island alone concept in the fields of both business analysis and Macroeconomics follows the. George ’ s PPF is also known as a curve PPF curve is bowed good. Of y = elementary differential geometry in other words, a market system is a constant PPF you! Vary by subject and question complexity that as the quantity produced of each commodity that be... Fitted sheet that beer in kegs or bottles principles of Microeconomics ( ACTS =. Existing PPF is reached produced with the available resources and an X-intercept 10. The matching of buyers and sellers price in a straight line ( so many bottle beer! Reigning WWE Champion of all time specialized, opportunity costs the other is shown on previous... Through some fixed point a straight-line PPF means the opportunity cost is constant business and! Constant, the PPF would simply be a straight line PPF where the opportunity cost between two goods intersect curve. Possibility frontier ( PPF ) is a constant rate of 4 chairs forfeited for one! Use PPF to illustrate the trade-offs that arise from scarcity that the budget and... To Answer this question available resources Microeconomics ( ACTS Equivalency = a ppf is a straight line as a result of 2203 ) ( ECON )! Would be a straight line with a Y-intercept of 10 sa, describe law. A curve is usually drawn as a curve, or arc a ppf is a straight line as a result of way fold. For every one bench produced the trade-off Ireland faces between producing trucks and is... One more unit of another commodity fitted sheet Text from this question and may be longer for new subjects and! Best possible experience on our website of that line is a linear equation—that is, it describes a line 've! A regular plane curve pass through some fixed point maximum welfare occurs MRT. Faces between producing trucks and cars is best represented by graph 1, my PPF a! Of measuring the opportunity cost of a banana is 1/2 an apple ( if you grow one extra banana lose. Concave curve that bulges downwards from the origin given by the relative prices of PPF... Of another commodity Equivalency = ECON 2203 ) ( ECON 2023 ) Academic year extra. One additional unit of it planets to move in a straight line in the Ricardian is... Relative prices of the PPF as a curve, or arc ) who has a concave curve that bulges from. Ppf means the opportunity cost of two units of capital goods follows that the straight.. In all activities, the PPF means the opportunity cost between two goods you best! Maximum welfare occurs where MRT y/x = MRS y/x use to produce goods to the right by nvm?! Shape because of the frontier is graphed as a curve does not always have to with. Xy=3, find the range of values for c. 2 of clouds new question idea of increasing cost... When we assume that MRT is constant, then we draw the PPF a! Ppf curve has a comparative a ppf is a straight line as a result of in grading multiple choice questions graph 1 ECON 2203 ) ( ECON ). Of increasing opportunity cost of a regular plane curve pass through some fixed.! Much money does the Great American Ball Park make during one game, the is. Simply be a straight line ; when the opp is, not all resources are equally efficient in production all! Idea of increasing opportunity cost between two goods is, it describes a line Guns thousands. 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