Draw Farmer Brown's production possibilities frontier (PPF), corn on horizontal axis and tobacco on vertical … When The Possibility Curve Is A Straight Line Does The Order Of Which Fields Brown Is Switching Matter? Sometimes, the production possibility frontier does not look like a curve—instead, it’s linear, meaning that it’s simply a straight line. The reason for downward shape of production possibility curve is: (a) Increasing opportunity cost (b) Decreasing opportunity cost The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.The manufacturing of most goods requires a … Inside the PPF curve is inefficient or involves unemployed workers. Answer. Question 35. Answer: (a) Concave to the origin. A production possibility curve measures the maximum output of two goods using a fixed amount of input. How does a production possibility curve illustrates the trade off of supply and demand? A production possibilities curve shows the combinations of two goods an economy is capable of producing. production possibility curve is a straight line. b. If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. The PPF curve can be for a single company or producer, or for the economy as a whole. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. C. concave to the point of origin. If the production possibilities curve is a straight line, then the A. opportunity cost of producing one good is zero. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced. High tech investment may even bend the curve the other way and have decreasing cost, but not forever. D. society is capable of producing only one of the goods and not the other. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. 79. D. is illustrated by a point inside the production possibilities curve. What is the shape of production possibility curve: (a) Concave to the origin ... Straight line (d) None of the above. It's impossible to draw a straight line through those 3 points. Related questions. B. convex to the point of origin. A. causes the production possibilities curve to shift outward. Below is an example of the trade-off between investing people in high tech industries versus entertainment industries. Outside the PPF curve is impossible. B. law of constant opportunity costs applies. D. ... Answer. 80. See the answer. This problem has been solved! Production Possibilities Frontier Graph. -----If the production possibilities curve is a straight line: a straight line. This is known as opportunity cost. The PPF is the collection of all output combinations possible, that are efficient. C. is illustrated by a point outside the production possibilities curve. The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. C. producer can produce more of both goods simultaneously. Answer link. B. can exist at any point on a production possibilities curve. … A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. 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