This problem has been solved! Inside the PPF curve is inefficient or involves unemployed workers. This is known as opportunity cost. It's impossible to draw a straight line through those 3 points. 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 … A. causes the production possibilities curve to shift outward. 79. C. is illustrated by a point outside the production possibilities curve. Question 35. production possibility curve is a straight line. What is the shape of production possibility curve: (a) Concave to the origin ... Straight line (d) None of the above. D. society is capable of producing only one of the goods and not the other. D. is illustrated by a point inside the production possibilities curve. How does a production possibility curve illustrates the trade off of supply and demand? -----If the production possibilities curve is a straight line: 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. Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … Answer. Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. High tech investment may even bend the curve the other way and have decreasing cost, but not forever. The PPF is the collection of all output combinations possible, that are efficient. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. B. can exist at any point on a production possibilities curve. Outside the PPF curve is impossible. … A production possibility curve measures the maximum output of two goods using a fixed amount of input. When The Possibility Curve Is A Straight Line Does The Order Of Which Fields Brown Is Switching Matter? a straight line. B. law of constant opportunity costs applies. 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. 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. If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. Production Possibilities Frontier Graph. The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost The downward slope of the production possibilities curve is an implication of scarcity. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. b. D. ... Answer. Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. Answer link. Answer: (a) Concave to the origin. 80. See the answer. B. convex to the point of origin. The PPF curve can be for a single company or producer, or for the economy as a whole. C. concave to the point of origin. C. producer can produce more of both goods simultaneously. 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. 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