can a PPC show a convex curve? explain?
Answer provided by Shivi is correct. A production possibility curve (PPC) is a curve which shows different combination of two goods that can be produced using all the resources of an economy with a given level of technology. By assumption a PPC is concave shaped to the origin, and this is because of the increasing marginal rate of transformation (MRT). A PPC can take convex shape only if the MRT decreases.
