What is an example of production possibilities frontier?
For example, if a company develops a new technology that can speed up making cheese, the output would also increase. This increase in production will shift the curve outwards as long as the other production factors remain constant. On the other hand, the curve can also shift inwards during times of economic hardships.
How do you calculate the production possibility frontier?
To calculate the production possibility frontier, choose two variables to compare and create a column within the spreadsheet for each variable. After filling the columns with each variable’s values, each row will have values that represent a data set that can be compared to determine production possibility values.
What is the economic significance of 25 fishes and 50 crabs captured?
The economic significance of capturing 25 fish and 50 crabs is that the harvest would be inside the production possibilities frontier, which suggests some resource unemployment. That resource unemployment could be either land, labor or capital.
What is PPC explain with diagram?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
How do you solve opportunity cost problems?
How to Calculate Opportunity Cost
- Opportunity Cost = Return on Most Profitable Investment Choice – Return on Investment Chosen to Pursue.
- Opportunity Cost = $80,000 (selling ten cars worth $8,000 each) – $60,000 (selling 5 trucks worth $12,000 each)
- Opportunity Cost = $20,000.
What is opportunity cost give example?
A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).
How is the concept of efficiency scarcity and trade-off related to the production possibility frontier?
Key Points The PPF captures the concepts of scarcity, choice, and tradeoffs. The shape of the PPF depends on whether there are increasing, decreasing, or constant costs. Points that lie on the PPF illustrate combinations of output that are productively efficient.
Where is crab found in India?
Currently, 120 species of freshwater crabs under 35 genera and two families are found in India. Kerala is the most species-rich (35 species) state in India followed by Maharashtra (29 species) and Assam (21 species). The Western Ghats of India now includes 17 genera and 58 species of gecarcinucid crabs.
What is production possibility frontier explain with diagram?
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
How do you calculate marginal cost from PPF?
In the diagram, at point A the slope of the PPF is -35/50 = -0.7. We would say the marginal cost of X at point A is 0.7 a unit of Y. And, the marginal cost of Y at point A is 1 and 3/7th units of X. The cost of moving from point A to point B is the number of Y units given up.
What is PPF explain with diagram?
Which scenario is the best example of an opportunity cost?
The correct answer is a. A computer company produces fewer laptops to meet tablet demand.