Seema and Nandita were discussing about the the economics class test. Seema said, “ Nandita, the exam was very tough. One of the characteristic of PPC is that it slopes downward, I couldn’t recall the second one. Could you please help me do the same? According to you what was Nandita’s reply?

PPC is concave to the origin

The characteristics of PPC i.e. production possibility frontier are as follows:

• PPC slopes downward from left to right because more of good x can only be produced with less production of good y.
• PPC is concave to the origin due to diminishing marginal rate of substitution.