![]() Characteristics of production possibility Curveĭue to scarcity of resources, society cannot satisfy all its wants.Assumptions of Production possibility Curve.In other words, production will follow the law of increasing opportunity costs. Consequently, The opportunity cost of producing each additional unit of commodity-1 tends to increase the loss of production of commodity-2. PPC is concave to the point of origin: It is because, to produce every additional unit of commodity-1, more and more units of commodity-2 will have to be sacrificed.It implies, More of commodity-1 can be produced only with less of commodity-2. ![]() Because, at the situation of full utilization of given resources, the production of both goods cannot be increased.
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