Ppf why bowed out

So if we move some of these people from Starbucks to Subway, we get a small increase in the quantity of sandwiches but a large decrease in the quantity of lattes. Similarly, people who have spent years working at Subway are good at producing sandwiches, but they have no idea how to produce a latte. So if we move some people from Subway to Starbucks, we get a small increase in the quantity of lattes but a large decrease in the quantity of sandwiches. The more we produce of either good, the less productive are the additional resources we use and the larger is the opportunity cost of one unit of that good.

A linear PPF would arise if resources were equally productive in all activities. In our example, if all workers were equally good at producing lattes and sandwiches, then the PPF would be a line. In cases with extreme specialization of labor or mass production, moving along the PPF would bring decreasing opportunity cost, and the PPF would be bowed inward.

This site uses Akismet to reduce spam. Learn how your comment data is processed. What is a PPF? What is an opportunity cost? Why is a PPF bowed outward? The short answer is: increasing opportunity cost. Could a PPF be a line? Could a PPF be bowed inward? Work these questions to solidify your understanding of the lesson, and get instant feedback.

Practice: Why is a PPF bowed outward? It takes her 60 minutes to get there on the bus and driving would have been 40, so her opportunity cost is 20 minutes.

Assuming your other options were less expensive, the value of what it would have cost to rent elsewhere is your opportunity cost. Understanding Comparative Advantage Put simply, an opportunity cost is a potential benefit that someone loses out on when selecting a particular option over another.

The company with the lower opportunity cost, and thus the smallest potential benefit which was lost, holds this type of advantage. As the law says, as you increase the production of one good, the opportunity cost to produce the additional good increases.

Begin typing your search term above and press enter to search. Press ESC to cancel. Skip to content Home Sociology Why does the PPF bow outward and what does that imply about the relation between opportunity cost and the quantity produced?

Ben Davis January 27, Why does the PPF bow outward and what does that imply about the relation between opportunity cost and the quantity produced? Why are some production possibility frontiers bowed out quizlet?

What is the relationship between PPC and opportunity cost? How do you explain the PPC curve? What are the uses of PPC? What are the features of PPC? What is an example of opportunity cost in your life? What factors into opportunity cost for a decision? What does it mean if opportunity cost is high? Is it better to have a higher or lower opportunity cost?