Why does MRT increase?

MRT increases because generally a PPC is concave to the origin.

How is MRT calculated?

The MRT is calculated by summing the total time in the body and dividing by the number of molecules, which is turns out to be 85.6 minutes. Thus MRT represents the average time a molecule stays in the body.

Are feasible frontiers always concave curves?

The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). The shape of a PPF is commonly drawn as concave to the origin to represent increasing opportunity cost with increased output of a good.

What is the PPC in economics?

The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

When MRT is constant and equal to one the PPC will be?

MRT is slope of PPF or PPF . therefore ,when MRT is constant , PPF will be downward sloping straight line .

Why PPF is a straight line?

A straight line PPF: A straight line PPF where the opportunity cost is constant. The slope of the PPF shows the rate at which the production of one good can be transferred to another. Within an economy, if the capacity to produce both goods increases, the result is economic growth.

What is production possibility curve explain with diagram?

The production possibility curve represents graphically alternative production possibilities open to an economy. The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.

What are the three stages of laws of production?

There is no difference between fixed and variable factors of production. There are 3 stages namely, increased returns, constant returns, and decreasing returns, and no stage is considered best for the long run.

What is the slope of the feasible frontier?

The slope of the feasible frontier at the point (t, f(24−t)) is the negative quantity −f′(24−t). The quantity of some good that must be sacrificed to acquire one additional unit of another good. At any point, it is the slope of the feasible frontier. See also: marginal rate of substitution.

What is the classic example of a PPF?

The PPF shows society’s maximum pro- duction output of one good given the produc- tion output of another good. This trade-off can be seen in the classic “guns vs. butter” example: All societies must decide how many weapons to produce and how much food production to sacrifice in order to produce the guns and vice versa.