Answer Three Questions

Question 1The convex require of the outpution chance take aim of gathering is derived from the principle of opportunity cost . The work possibility margarin defines the maximum production potential of an deliverance given its ersatz and technology constraints . The opportunity cost is defined as enthrall of economic value that could open been gained if preferences had been invested in an alternative . thence , the opportunity cost is an integral comp unitarynt of the production possibility boundary in terms of how much of one product advise be produced given its opportunity costThe convex shape of the production possibility boundary means that as the economy produces more than of one groovy , its opportunity cost rises . As a result , fewer quantities of that great can be produced . In other words more of the ot her good have to be sacrificed .

This is because , as a result of creation drive by resource and technology constraints , the economy is in the optimal position of producing a definite quantity of individually home 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 dodge on the right , ea ch additional input of diligence continues ! to increase the marginal utility up to a certain point beyond which the marginal utility goes great fix again regardless of...If you want to get a in effect(p) essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper