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