Shifting the ppf curve, Microeconomics

 

Shifting the PPF Curve

To raise the manufacturing of one good without reducing the production of the other, the PPF curve should shift outward. The PPF curve shifts outward as a consequence of an increase in the economy’s resources or a technological innovation or creativity that increases the output obtained from a particular quantity of resources. From point d, an extra 200 tons of factory goods or 20 tons of farm goods are now possible.

 

 

459_shift in ppf.png

Posted Date: 7/24/2012 7:11:28 AM | Location : United States







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