× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
New Topic  
nakungth nakungth
wrote...
Posts: 1175
Rep: 3 0
6 years ago
Why is the production possibilities frontier concave to (bowed away from) the origin?
A) Consumers have declining marginal utility, so their relative satisfaction from consuming a good changes as they move from high levels to low levels of consumption.
B) The shape of the curve is due to the marginal costs of producing the two goods.  At high levels of output for a particular good, the marginal cost is very high, and the firm can use the same inputs to produce a relatively large quantity of the other good.
C) For a production possibilities frontier, we no longer assume firms are price takers, and the input prices and output prices change as the firms alter their mix of outputs.
D) none of the above
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 81 times
2 Replies

Related Topics

Replies
wrote...
6 years ago
B
nakungth Author
wrote...
5 years ago
Thank you!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1297 People Browsing
 103 Signed Up Today
Related Images
  
 1059
  
 566
  
 286
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145