Answered: Explain Production possibility frontier…

Explain Production possibility frontier with an example and give explanation on why it is represented as a curved diagram(concave)

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 1QR

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Question

Explain Production possibility frontier with an example and give explanation on why it is represented as a curved diagram(concave)

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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