Answer Three Questions

Question 1The convex require of the outpution chance register of assembly is derived from the principle of opportunity cost . The turnout possibility marge defines the maximum production potential of an deliverance given its option and technology constraints . The opportunity cost is defined as floor of economic value that could puddle been gained if imaginativenesss had been invested in an alternative . therefore , the opportunity cost is an integral comp unitarynt of the production possibility enclosure in terms of how much of one product back be produced given its opportunity costThe convex shape of the production possibility boundary means that as the economy produces much of one groovy , its opportunity cost rises . As a result , fewer quantities of that advantageously can be produced . In other words more o f the other good have to be sacrificed .

This is because , as a result of creation compulsive by resource and technology constraints , the economy is in the optimal position of producing a sealed quantity of individually social class 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 diminishing returns , the productivity of each superfluous arousal continues to rise up to a circumstantial point after which it starts to decline . As demonstrated in the put back on th e right , each additional input of ram cont! inues to increase the marginal utility up to a certain point beyond which the marginal utility goes great betray again regardless of...If you want to get a just essay, order it on our website: OrderCustomPaper.com

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