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in Economics by (53.0k points)

Giving reason, comment on the shape of Production Possibility Curve based on the following schedule :

Good X (Units) Good Y (Units)
0 8
1 6
2 4
3 2
4 0

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Good X (Units) Good Y (Units)
0 8
1 6
2 4
3 2
4 0

When we draw the data given in the table, we find, that when we increase X by one unit we have to sacrifice 2 units of Y. This shows that where Marginal Opportunity Cost or MRS is constant, PPC will be a straight line sloping downwards.

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