can two ppc ever intersect/cut each other?
Yes, two Production Possibility Curves can cross each other. This will happen when the technology used in the production of one good (say Good X) appreciates and the technology employed in the production of the other good (say Good Y) depreciates simultaneously.
In the above diagram, as the technology of Good X appreciates the horizontal intercept slides forward from B to D. Simultaneously, as the technology employed in the production of Good Y depreciates, the vertical intercept of the curve slides downwards from A to C. Therefore, a simultaneous change in the technologies of Good X and Y causes the final PPC to intersect the origin PPC at point E.
yes 2 ppcs can definitely cut each other.
1. ppc standa for production possibilty and we can have 2 curves with production possibilties as follows
B. (1,5) (2,3) (3,1)
Now ,if we plot these on graph we get the intersection point-(2,3). but the main question is why does the ppc B slope all resources are not equally efficent to produce everthing.
Eg. take a piece of land and divide it into two parts- I (left side of land) II (right side of land) and let us assume that PPC A B give production possibilities of wheat and cotton.
CASE 1- you use part I of land for producing wheat and part II for cotton .this means you are giving equal resources to each crop.. Now this gives you production possibility A. ie. PPC A
CASE 2- if you had used part I for cotton and part II for wheat then the case might have been different and would have given you PPC B.