The diagram on the left shows the production possibility curve.

Why is it that shape?

If efficiency improves then does the curve shift outwards?

What if workers, working at their maximum efficiency now INVENT a better way of working - thus they are past their previous maximum efficiency. Does the curve then shift outwards?

What if the curve was concave - or simply a straight line?

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About the first question I do not know the answer But for the second one I think the answer is yes it does,it is also the answer for the third one. I think ...

ReplyDeleteAbout the first question I do not know the answer but for the second one I think the answer is yes The ppc will shift to the right.And so does the third question .But the one thing for the third question is sometime new ways may be negative.But you said thus they are past their previous maximum efficiency ... so I don't know anyway I think the answer is yes. I think...

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