Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | What is a production possibility frontie
What is a production possibility frontier?
The production possibility frontier (PPF) refers to a curve that shows various alternative combinations of two goods that can be produced with efficient utilization of the given resources and technology. It is also called the production possibility curve (PPC). All the points lying on the PPC, that is curve AE, are associated with different quantities of good 1 and good 2 produced, by employing the available resources fully and in an efficient manner. While any point lying under the curve, like F, depicts inefficiency or under utilisation of available resources. Whereas any point lying outside the curve, like Z, depicts over utilisation of the available endowment of resources and technology; making it non-feasible.
More Questions From Class 12 Micro Economics - Chapter Introduction to Micro Economics
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Distinguish between a centrally planned economy and a market economy.
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Distinguish between microeconomics and macroeconomics.
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What do you mean by the production possibilities of an economy?
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Discuss the subject matter of economics.
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Discuss the central problems of an economy.
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What do you understand by normative economic analysis?
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What do you understand by positive economic analysis?
Popular Questions of Class 12 Micro Economics
- Q:-
Explain the concept of a production function
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What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
- Q:-
Explain market equilibrium.
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What are the characteristics of a perfectly competitive market?
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What do you mean by the budget set of a consumer?
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What is the total product of input?
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From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
-
- Q:-
When do we say that there is an excess demand for a commodity in the market?
- Q:-
How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
- Q:-
What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
- Q:-
What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?
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What is the value of the MR when the demand curve is elastic?
- Q:-
What do the short-run marginal cost, average variable cost and short-run average cost curves look like?
- Q:-
Explain the relationship between the marginal products and the total product of an input.
- Q:-
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
-
- Q:-
What happens to the budget set if both the prices as well as the income double?
- Q:-
How will a change in the price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity also through a diagram.
- Q:-
What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
- Q:-
At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is the equilibrium quantity determined in such a market?
- Q:-
Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
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