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A. increasing marginal cost. Concavity of function implies convex upper contour. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Abstract. concavity meaning: 1. the quality of curving in, or an object or surface that curves in: 2. the quality of curving…. Concavity of PPC implies:a)increasing slopeb)decreasing slopec)constant sloped)none of theseCorrect answer is option 'A'. with the concavity of the aggregate production function implies that the return on the capital stock should be high. concavity of the utility function. Please share how this access benefits you. We consider a skew product with the interval [0,a] as a fiber space and maps in fibers that are concave and fix 0. Learn more. Concavity definition, the state or quality of being concave. Can you explain this answer? What's the intuitive difference between quasi-concavity and concavity? A PPC curve generally refers to the representation of amount of two different goods that can be obtained by foregoing an estimate of a certain unit required in terms of another. D. Constant marginal opportunity cost. Performance & security by Cloudflare, Please complete the security check to access. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Cancavity of PPC implies (a) . this video is all about: Production Possibility Curve Class XI, Reason behind Concavity of PPC, Numerical Explanation. • Kimball (1990) shows that the concavity of the consumption function implies that the e ective risk aversion of an agent’s value function is higher than the risk aversion of the utility function. Asked on May 01, 2020 by Sumita Bobby. Increasing marginal opportunity cost. At the level of full-employment the economy can have more of capital goods at point B, or more of consumer goods at point C, or more of both the goods at point D. Learn more. Concavity of the indifference curves implies that the marginal rate of substitution of X for y increases when more of X is substituted for Y. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. A glance at Figure 1.1 will reveal that if the economy is operating at point B on the production possibility curve AF, then one thousand metres of cloth and fourteen thousand quintals of wheat are being produced. C. Decreasing marginal opportunity cost. Answer. Stack Exchange Network . Find the points of inflection if any. View Answer If an economy is operating inside the PPC, it is possible to increase the production of Good - 1 without any decrease in the production of Good - 2 . Consider an example of an economy with two goods (X and Y) and one input (L). We consider a skew product with the interval [0,a] as a fiber space and maps in fibers that are concave and fix 0. Can you explain this answer? Recognizing concavity exercise - Mathematics, Chapter 4.4 Concavity and Curve Sketching Exercises, Concavity, concave upwards and concave downwards intervals, Inflection Points and Concavity Intuition - Calculus, Mathematics, CONVEXITY AND CONCAVITY OF FUNCTIONS,MATHEMATICAL METHODS IN ECONOMICS-2, Business Mathematics and Logical Reasoning & Statistics, Mock Tests & Past Year Papers for CA Foundation, CA CPT - Mock Test Series and Previous Year Question Papers, CA CPT 2019: Important Dates [Official], Application, Eligibility, Syllabus, Exam Pattern, How to prepare for Economics for CA CPT? Leads to the origin ) as tradeoffs between the production function is homogeneous of degree γ and quasiconcave a }. 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