Question
Why is a production possibility curve concave to the origin? Explain.
OR
Why is a typical production possibility curve concave? Explain.
OR
Why is a typical production possibility curve concave? Explain.
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Price (Rs)
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$SS_1$ (kg)
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$SS_2$ (kg)
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0
1
2
3
4
5
6
7
8
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0
0
0
1
2
3
4
5
6
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0
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0
0
0.5
1
1.5
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2.5
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| Good X (units) | Good Y (units) |
| 0 | 8 |
| 1 | 6 |
| 2 | 4 |
| 3 | 2 |
| 4 | 0 |
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Units of labour
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TP
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$\text{MP}_\text{L}$
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$\text{AP}_\text{L}$
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1.
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20
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-
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-
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2.
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-
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22
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-
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3.
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-
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-
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22
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