Production Possibilities Frontier Conditions
Not what you're looking for?
1. Explain the connections between opportunity cost and the production possibilities frontier ?
2. What is the relationship between the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced ?
3. When economists state that the opportunity cost of a product increases as more of it is produced, what do they mean?
Purchase this Solution
Solution Summary
This solution of 257 words defines and explains opportunity cost and production possibilities frontier.
Solution Preview
This a pretty straightforward question. Firstly, when reading my response, I suggest you bring up an image of a PPF. By description, a PPF is one quarter of a circle contained between an X-Y axis. There is a good on each axis, with the typical example being "Guns and Butter".
Society can produce either only guns, or only butter. It can also ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.