Why does an economic problem arise? Explain.

OR

Why is a production possibility curve concave to the origin? Explain.

Open in App

Solution

Economic problem arise because of resources are limited with respect to their wants and they have alternative uses.

OR

It is concave to the origin because of increasing MRT i.e., in producing an additional unit of a commodity more and more units of the other commodity are to be sacrificed, as no resources is not equally efficient in production of both the goods.

Suggest Corrections

Similar questions

Explain why is production possibility frontier concave.

Explain the central problem "how to produce."

Explain why a production possibilities curve is concave.

Why is the production possibilites curve concave? Explain.

Join BYJU'S Learning Program