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Ann [662]
3 years ago
8

What does each point on a production possibilities curve show

History
2 answers:
zavuch27 [327]3 years ago
8 0

an efficient utilization of resources

Helga [31]3 years ago
4 0

Each point on a production possibilities curve shows the efficient utilization of resources. Each point on the curve demonstrates how much of each goodwill be generated when resources shift from producing more of one good and less good of the other.

 

EXPLANATION:  

The production probability curve calculates the maximum output of two goods utilizing a fixed number of inputs. Input is a combination of the four factors of the manufacture. They are land and other natural resources, capital goods, entrepreneurship, and labor. The production of most items needs a mixture of all four.

By illustrating this trade-off, the curve shows the concept of opportunity cost. Doing more than one good will make people lose the opportunity to produce more goods. The production probability curve illustrates the cost of the community’s preference between two different goods.

The production possibility curve is bent outward. The highest point on the curve is when a company only produces one item, on the y-axis, and zero from the other, on the x-axis. On the graph, that is Point A. The economy produces 140,000 apples and zero oranges.

The widest point is when a company produces nothing on the y-axis, producing as much as it can of goods on the x-axis. On the graph, that is point D. The community produces zero apples and 40,000 oranges.

All points are trade-offs from a combination of the two items. An economy works more efficiently by making that mixture. The reason is that each resource is more suitable for making one item than another. Some lands are more suitable for apples, while others are best for oranges. The community does its best when directing the production of each resource to its specialty. The more specific the resource, the greater the production possibilities curve

LEARN MORE:  

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• Define production possibility curve? brainly.com/question/12047178

• On a production possibility curve, data points that fall outside of the curve represent? brainly.com/question/11976178

KEYWORDS : production possibility curve, efficient utilization of resources

Subject  : History

Class  : 10-12

Sub-Chapter : Production Possibility Curve

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