Answer to Question #155521 in Microeconomics for jack

Question

. Production Possibilities Frontier slopes downward because production of one commodity (X)

can be increased only by decreasing the production of second commodity

(Y). Explain.

Answer 1

The production possibilities frontier  shows the combinations of goods and services that can be produced  efficiently in an economy at a point in time. Therefore producing  more of one good requires producing  less of others.This is because the production  of a good has an opportunity cost.