The production possibilities frontier (ppf), Microeconomics

Assignment Help:

The Production Possibilities Frontier (PPF)

The PPF curve exhibits the probable combinations of goods and services accessible to an economy, given that all productive resources are completely and  efficiently employed. When the economy is at point i, resources are not completely  employed and/or they are not used effectively. Point g is desirable as it gives more of both the goods, but not achievable by given the amount of resources available. Point d is one of the like combinations of goods manufactured when resources are completely and efficiently employed.

Scarcity and the PPF

To enhance the quantity of farm goods by 10 tons, we should sacrifice 100 tons of factory goods. The PPF curve is bowed out as resources are not fully adaptable to the manufacturing of the two goods. As we raise the production of one good, we sacrifice subsequently more of the other.


Related Discussions:- The production possibilities frontier (ppf)

Rational producer, in the context of managerial economics how do you explai...

in the context of managerial economics how do you explain a rational producer.illustrate giving example.

Economic rent, Economic Rent - Economic rent is difference between what...

Economic Rent - Economic rent is difference between what firms are willing to pay for the input less the minimum amount required to obtain it. * An Example - There are tw

Quantity supply, factor influencing quantity supplied

factor influencing quantity supplied

Why is it considered well to bring all bop to zero, Why is it considered we...

Why is it considered well to bring all BOP's to zero?   If BOP of any country is zero, it reflects that the present account of that country has sufficient balance to meet the n

Deviation, Deviation - Difference between the expected and actual payof...

Deviation - Difference between the expected and actual payoff -  Adjusting for the negative numbers -  The standard deviation measures square root of average of squa

Micro economics, what is the theory of second best? prove the theorem with ...

what is the theory of second best? prove the theorem with the help of a diagram.

Curves, how to map the curves

how to map the curves

Law of diminishing marginal utility, law of diminishing marginal utility it...

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Measuring costs, Measuring Cost: Which Costs Matter? Accounting Cost v...

Measuring Cost: Which Costs Matter? Accounting Cost versus Economic Cost - Accounting Cost Actual expenses and adding the depreciation charges for the capital equip

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd