Giving reasons, comment on the shape of production possibilities curve based on the following table:
Good-X (Units) $0$ $1$ $2$ $3$ $4$
Good-Y (Units) $4$ $3$ $2$ $1$ $0$

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Solution

Good-X (Units) Good-Y (Units) Marginal Opportunity Cost
$0$ $4$ -
$1$ $3$ $\frac{1}{1} = 1$
$2$ $2$ $\frac{1}{1} = 1$
$3$ $1$ $\frac{1}{1} = 1$
$4$ $0$ $\frac{1}{1} = 1$
The schedule shows that the marginal opportunity cost of producing more of Good-X in place of Good-Y is constant. Accordingly, production possibility curve is to be a downward sloping straight line.

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Similar questions

Good-X (Units)	$0$	$1$	$2$	$3$	$4$
Good-Y (Units)	$8$	$6$	$4$	$2$	$0$

Good-X (Units)	$0$	$1$	$2$	$3$	$4$
Good-Y (Units)	$20$	$18$	$14$	$8$	$0$

Giving reason comment on the shape of production possibilities curve based on the following schedule:

$\begin{matrix} Goods-X & 0 & 1 & 2 & 3 & 4 Units Goods-Y & 8 & 6 & 4 & 2 & 0 Units \end{matrix}$

Good - A (units)	0	1	2	3	4	5
Good - B (units)	65	52	39	26	13	0

(x - 3) (x - 4) + (y - 1) (y - 2) = 0

△ P A B

(3, 2)

(4, 1)

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