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WebThe bowed-out SHAPE of the PPC is a result of the law of increasing costs. We call this shape "concave to the origin". Rationale. Why is the law of increasing costs true? Why is the PPC concave to the origin (bowed out)? Why does it cost more to produce the second Robot than to produce the first assuming that the Robots are identical? WebMay 11, 2024 · Why Is the PPC Bowed Out? The curved shape of the PPC reflects the law of diminishing returns. This means that each additional input factor of production has less of an impact at a certain point. At first, … personalized desk name plates glass
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WebThe concept of opportunity cost in economics can change depending on the scenario. For example, there might be a trade-off between hunting for rabbits or gathering berries. As one pursues more rabbits, the opportunity cost (in terms of berries given up) increases. This phenomenon is illustrated graphically with a bow-shaped curve. WebThe reason for the shape of the Production Possibilities Curve (PPC) is something called the law of increasing opportunity costs. Basically, what this means is that as an economy … WebFeb 12, 2014 · Why is ppf bowed outward? February 12, 2014 , sahan , Leave a comment. Production Possibility Frontier (PPF) is an economic term that simply represents a curve of the maximum combination of output an … standard size for poster