What does the slope of the PPF show?
The slope of the PPF indicates the opportunity cost of producing one good versus the other good, and the opportunity cost can be compared to the opportunity costs of another producer to determine comparative advantage.
How do you derive the PPF curve?
The PPF can be derived from the contract curve on an Edgeworth box. In this box, we see the quantity of inputs (K, L) being used in the production of each good (X,Y). In fact, we can see how, for each quantity of each product, the quantity of each input can change.
What is Isoquant curve?
An isoquant curve is a concave-shaped line on a graph, used in the study of microeconomics, that charts all the factors, or inputs, that produce a specified level of output. Most typically, an isoquant shows combinations of capital and labor and the technological trade-off between the two.
What is transformation curve?
The transformation curve is defined, in international economics, as the maximum amount of commodity X obtainable for any given amount of commodity Y, and vice versa. This concept is basically the same as the production-possibility frontier studied in microeconomics.
What is slope of PPC?
The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other. …
Why is PPF slope negative?
The negative slope of the production possibilities frontier reflects opportunity cost. The opportunity cost of producing more meals is that fewer web pages can be created. Further, it will be able to produce new goods. Another factor shifting the production possibilities frontier outward over time is technology.
What formula is y MX B?
The equation of any straight line, called a linear equation, can be written as: y = mx + b, where m is the slope of the line and b is the y-intercept. The y-intercept of this line is the value of y at the point where the line crosses the y axis.
What if there is no B in Y MX B?
If an equation of a line in slope-intercept form (y=mx+b) has no x variable, this means that the slope is 0.
What is y mx b used for?
y = mx + b is the formula used to find the equation of a straight line, when we know the slope(m) and the y-intercept (b) of the line.
What is the meaning of B in Y MX B?
In the equation of a straight line (when the equation is written as “y = mx + b”), the slope is the number “m” that is multiplied on the x, and “b” is the y-intercept (that is, the point where the line crosses the vertical y-axis).
What does the M stand for in the equation y MX B?
slope of