On a production possibilities curve (ppc), an improvement in the state of technology affecting all goods would signify an outward type of shift.
Production possibility curve will shift outward because with the improvement in the technology the production of two type of goods will increase.
The PPC can be used to illustrate the concepts of scarcity, opportunity cost, economic growth, inefficiency, efficiency and contractions.
It represents all the groups of two different goods that can be produced at one time.
When there will be increasing opportunity cost of production ppc will become bow shaped.
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