The slope of the PPF curve represent: the maximum production of good on the horizontal axis the opportunity cost of producing 1 unit of good on the horizontal axis in terms of good on the vertical axis the opportunity cost of producing 1 unit of good on the vertical axis in terms of good on the horizontal axis the maximum combination of producing both goods
Added by Karen S.
Close
Step 1
Step 1: The slope of the PPF curve represents the opportunity cost of producing 1 unit of good on the horizontal axis in terms of good on the vertical axis. Show more…
Show all steps
Your feedback will help us improve your experience
James Kiss and 83 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
1. Imagine a country experiences an increase in the resources used to produce a good depicted on the y-axis of a PPF. How would this change the countries PPF? a)The y-intercept would decrease but the x-axis would remain the same b)The y-intercept would increase but the x-axis would remain the same c)The x-intercept would decrease but the y-axis would remain the same d)The x-intercept would increase but the y-axis would remain the same 2. Consider the curved PPF below. What is happening to the opportunity cost of spices as the country produces more spices? a)The opportunity cost is staying the same b)The opportunity cost is increasing c)The opportunity cost is decreasing
James K.
The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products: rubber band balls and rubber hoses, and on a given day, it can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods that Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximizes their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before?
Akash M.
Crystal W.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD