Decreasing Opportunity Costs in the PPC Model

Рет қаралды 19,646

6 жыл бұрын

The shape of a production possibilities curve tells us how the opportunity cost of a good changes as output of that good increases. If the PPC is bowed inwards towards the origin, then the opportunity cost of a good decrease as its output increases. This lesson explains and illustrates how and why this might happen.
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Пікірлер: 17

@richardgordon 3 жыл бұрын

Thanks Jason! I feel like superman re-acquiring my economics skills so easily.

@DeltaDoubleZero 4 жыл бұрын

My classmate and I had argued how we will study economic. He argues for the book and I argue for the Videos you've made. It was later that we found out that the Book and the Video are written and created by Jason Welker XD.

@pinkkimchi3905 3 жыл бұрын

BROOOO IT'S FUCKING 1 AM AND U LITERALLY SAVED ME ON MY ECON HOMEWORK YOU ARE THE BEST!!!

@jadon2712 5 жыл бұрын

Thank you very much 🙏

@khongoroozul 5 жыл бұрын

most grateful

@janithdesilva9327 3 жыл бұрын

Thank you soo much

@romeoreb5659 4 жыл бұрын

Sir if we increase the production of mobiles then what will happen to opportunity cost

@pinkkimchi3905 3 жыл бұрын

it decreases!!! convex ppc has decreasing opportunity cost, meaning you give up less and less as you produce more mobile phones because as mentioned, technology keeps on improving resulting for us to have more resources to produce phones at a cheaper price!

@anshulkhandelwal3679 4 жыл бұрын

Doesn't the PPC display the production possibilities when technology and resources are fixed and unchaning?

@aterribleyoutuber9039 3 жыл бұрын

Yes, this seems fatally flawed

@abhisheknandi9566 Жыл бұрын

The tech isnt changing. It is assumed to be constant but the allocation of tech among smartphone & car is changing.

@shammaalali352 3 жыл бұрын

how is that not constant op

@samakalasan9274 5 жыл бұрын

What is the reason for decreasing oppertunity cost?

@hassanahejji2789 4 жыл бұрын

"When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing." www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/production-possibilities-curve-scarcity-choice-and-opportunity-cost-macro/v/ppcs-for-increasing-decreasing-and-constant-opportunity-cost

@katyovid8993 4 жыл бұрын

The advancement of technology