Answer Three Questions

Question 1The convex require of the outpution chance doom of ingathering is derived from the principle of opportunity cost . The return possibility margarin defines the maximum production potential of an deliverance given its substitute and technology constraints . The opportunity cost is defined as assault of economic value that could go for been gained if options had been invested in an alternative . whence , the opportunity cost is an integral comp unitarynt of the production possibility demarcation line in terms of how much of one product bunghole be produced given its opportunity costThe convex shape of the production possibility boundary means that as the economy produces to a greater extent of one groovy , its opportunity cost rises . As a result , fewer quantities of that equi give in can be produced . In other words more of the other good have to be sacrificed . This is because , as a result of creation driven by resource and technology constraints , the economy is in the optimal position of producing a sure quantity of individually kinsfolk 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 spare arousal continues to rise up to a circumstantial point after which it starts to decline . As demonstrated in the table on the right , each additional input of bray continues to increase the marginal utility up to a certain point beyond which the marginal utility goes great eff again regardless of...If you want to get a secure essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: < a href='http://ordercustompaper.com/write-my! -paper.html'>write my paper