Can PPF covex to the origin? give reason.

Dear student,

PPF can be convex to the origin if MRT is decreasing, i.e. less and less units of a commodity are sacrificed to gain an additional unit of another commodity. In such case, PPF will be a convex shaped curve 


Regards

 

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No, PPF can't be convex to the origin.
Because, if it is convex, it means that the slope is decreasing and hence MRT is decreasing, which is not possible.
The actual shape if PPC is downward sloping, concave to the origin
  • 0
What are you looking for?