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Why is production possibility curve concave? Explain.

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Production Possibility Curve is concave to the origin because of increasing marginal rate of transformation (MRT). i.e., more and more units of on commondity are sacrificed to gain an additional unit of another commodity.
MRT increases because it is assumed that no resource is equally efficient in production of all goods As resources are transferred from one good to another, less and efficient resources have to be employed. This raises cost and rises MRT.

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