Decreasing Opportunity Costs in the PPC Model

The shape of a production possibilities curve tells us how the opportunity cost of a good changes as output of that good increases. If the PPC is bowed inwards towards the origin, then the opportunity cost of a good decrease as its output increases. This lesson explains and illustrates how and why this might happen.
More resources for economics students and teachers at econclassroom.com

[@richardgordon]

Thanks Jason! I feel like superman re-acquiring my economics skills so easily.

[@pinkkimchi3905]

BROOOO IT'S FUCKING 1 AM AND U LITERALLY SAVED ME ON MY ECON HOMEWORK YOU ARE THE BEST!!!

[@DeltaDoubleZero]

My classmate and I had argued how we will study economic. He argues for the book and I argue for the Videos you've made. It was later that we found out that the Book and the Video are written and created by Jason Welker XD.

[@jadon2712]

Thank you very much 🙏

[@khongoroozul]

most grateful

[@janithdesilva9327]

Thank you soo much

[@anshulkhandelwal3679]

Doesn't the PPC display the production possibilities when technology and resources are fixed and unchaning?

[@aterribleyoutuber9039]

Yes, this seems fatally flawed

[@abhisheknandi9566]

The tech isnt changing. It is assumed to be constant but the allocation of tech among smartphone & car is changing.

[@romeoreb5659]

Sir if we increase the production of mobiles then what will happen to opportunity cost

[@pinkkimchi3905]

it decreases!!! convex ppc has decreasing opportunity cost, meaning you give up less and less as you produce more mobile phones because as mentioned, technology keeps on improving resulting for us to have more resources to produce phones at a cheaper price!

[@shammaalali352]

how is that not constant op

[@samakalasan9274]

What is the reason for decreasing oppertunity cost?

[@hassanahejji2789]

"When the PPC is a straight line, opportunity costs are the same no matter how far you move along the curve. When the PPC is concave (bowed out), opportunity costs increase as you move along the curve. When the PPC is convex (bowed in), opportunity costs are decreasing." www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/production-possibilities-curve-scarcity-choice-and-opportunity-cost-macro/v/ppcs-for-increasing-decreasing-and-constant-opportunity-cost

[@katyovid8993]

The advancement of technology

[@edwinrelf8454]

In 1981 an IMB PC cost $10,000 in 1981 dollars - not 2016 dollars!

[@khalofacts5651]

please slow down when explaining english is a little bit difficult