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What is the slope of PPC

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What is the slope of PPC

Posted by Parul Creation 5 years, 3 months ago

CBSE > Class 11 > अर्थशास्त्र

1 answers

Yogita Ingle 5 years, 3 months ago

The value of slope at any point on the Production Possibilities Frontier (PPF) curve or Production Possibilities Curve (PPC) indicates the opportunity cost. It is also called as marginal rate of transformation (MRT).

Slope of the PPC defines the rate of producing two goods with available resources and technology. When all the resources are used in manufacturing of one good, then the production of other good is affected. So, the production of one good depends on the production of other good, which impacts the opportunity cost of producing the good.

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CBSE > Class 11 > अर्थशास्त्र