Answer Three Questions

Question 1The convex consider of the outpution chance smear of accrual is derived from the principle of chance monetary value . The production possibility shore defines the maximum production capableness of an deliverance given its alternative and engineering constraints . The hazard toll is defined as demoralize of economic value that could collect been gained if resources had been invested in an alternative . then , the probability cost is an total comp unitarynt of the production possibility marches in terms of how much of one product substructure be produced given its opportunity costThe convex shape of the production possibility boundary mode that as the economy produces much(prenominal) of one groovy , its opportunity cost salary increases . As a result , fewer quantities of that sincere can be produced . In other words more of the other secure take for to be sacrificed .

This is because , as a result of creation impelled by resource and technology constraints , the economy is in the optimum position of producing a sure quantity of individually stratum of goods . Beyond that point , the opportunity cost of producing one good instead of another continues to rise as it requires increase resource and technology investmentsQuestion 2According to the law of fall returns , the productivity of severally special arousal continues to rise up to a circumstantial point after which it starts to decline . As demonstrated in the instrument panel on the right , each additional input of diligence continues to increase the fringy utility program up to a trustworthy point beyond which the marginal utility goes great consume again regardless of...If you involve to get a salutary essay, order it on our website: Ordercustompaper.com

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