Question

Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?

Short answer

It's a graph that depicts the many combinations of two items that a given economy can generate given its resources and technology.

Step-by-step solution

Step 1

Because of the premise of an increasing marginal rate of technology substitution, the Production Possibility Frontier is usually depicted as a curve. As we move from left to right, the MRT rises, making the curve concave toward the origin.

Step 2

The slope of the PPF, or Marginal rate of transformation (MRT), is constant if the PPF is a downward sloping straight line. That is, in the case where both items are natural perfect alternatives.