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Ppc zero opportunity cost graph

2020-01-28 21:56

Aug 30, 2008 Best Answer: On a PPF the curve slope represents the opportunity cost. If the opportunity cost is zero, the slope will be zero (completely horizontal) or infinity (vertical). Basically draw a graphMay 21, 2019 The shape of a production possibility curve (PPC) reveals important information about the opportunity cost involved in producing two goods. When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. ppc zero opportunity cost graph

zero opportunity costs illustrated. shows Good A is a free good, meaning we can have as much of Good B without giving up Good A PPC Curve Shapes: Horizontal shows Good B is a free good: to help determine which good is free remember that the good parallel to the line is the free good

The opportunity cost of such a decision is the value of the next best alternative use of scarce resources. Opportunity cost can be illustrated by using production possibility frontiers (PPFs) which provide a simple, yet powerful tool to illustrate the effects of making an economic choice. Opportunity Cost and PPC. A) By a point outside the production possibilities frontier. B) By a point on the production possibilities frontier. C) By a point inside the production possibilities frontier. D) Either by a point on, or inside, the production possibilities frontier. E) By a rightward shift in the production possibilities frontier. ppc zero opportunity cost graph First, a combination of 40 G and zero D is plotted in the figure 36 G and one of D etc. ; the connected points yield a production possibilities curve, the slope of which is the mrt. The production possibilities curve is concave toward the origin, showing that the substitution rate is not constant but increasing.

Lesson summary: Opportunity cost and the PPC. The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions. ppc zero opportunity cost graph Answer. On a PPF the curve slope represents the opportunity cost. If the opportunity cost is zero, the slope will be zero (completely horizontal) or infinity (vertical) depending upon which good's opportunity cost is zero. Basically If we draw a graph with Good A on the Xaxis and good B on the Yaxis.

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