How does a production possibility curve illustrates the trade off of supply and demand? It's impossible to draw a straight line through those 3 points. 80. A. causes the production possibilities curve to shift outward. Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … D. society is capable of producing only one of the goods and not the other. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. When The Possibility Curve Is A Straight Line Does The Order Of Which Fields Brown Is Switching Matter? Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. What is the shape of production possibility curve: (a) Concave to the origin ... Straight line (d) None of the above. A production possibilities curve shows the combinations of two goods an economy is capable of producing. C. is illustrated by a point outside the production possibilities curve. The PPF is the collection of all output combinations possible, that are efficient. C. concave to the point of origin. A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. See the answer. A production possibility curve measures the maximum output of two goods using a fixed amount of input. … This is known as opportunity cost. 79. If the production possibilities curve is a straight line, then the A. opportunity cost of producing one good is zero. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. This problem has been solved! B. law of constant opportunity costs applies. Related questions. -----If the production possibilities curve is a straight line: B. can exist at any point on a production possibilities curve. C. producer can produce more of both goods simultaneously. a straight line. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.The manufacturing of most goods requires a … production possibility curve is a straight line. Question 35. The PPF curve can be for a single company or producer, or for the economy as a whole. B. convex to the point of origin. The downward slope of the production possibilities curve is an implication of scarcity. Answer link. Production Possibilities Frontier Graph. Answer: (a) Concave to the origin. The slope of production possibility curve is 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. Answer. Inside the PPF curve is inefficient or involves unemployed workers. The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost b. D. ... Answer. Outside the PPF curve is impossible. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced. High tech investment may even bend the curve the other way and have decreasing cost, but not forever. D. is illustrated by a point inside the production possibilities curve. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. 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