Explain the shape of a production possibility frontier.

1.	Explain the shape of a production possibility frontier.
Answer» <html><body><p></p>Solution :Production Possibility Frontier (<a href="https://interviewquestions.tuteehub.com/tag/ppf-592456" style="font-weight:bold;" target="_blank" title="Click to know more about PPF">PPF</a>) is a downward <a href="https://interviewquestions.tuteehub.com/tag/sloping-7378327" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPING">SLOPING</a>, concave curve. It shows <a href="https://interviewquestions.tuteehub.com/tag/increasing-1040633" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASING">INCREASING</a> Marginal Rate of Transformation (MRT)as more quantity of one good is produced by reducing quantity of the other good. This behaviour of the MRT is based on the assumption that all less and less efficient resources have to be transferred to the production of the other good which <a href="https://interviewquestions.tuteehub.com/tag/raises-1176804" style="font-weight:bold;" target="_blank" title="Click to know more about RAISES">RAISES</a> marginal <a href="https://interviewquestions.tuteehub.com/tag/cose-2549513" style="font-weight:bold;" target="_blank" title="Click to know more about COSE">COSE</a>, i.e., MRT.</body></html>

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