Properties of PPC

 

PPC slopes downward from left to right because in a situation of fuller utilisation of resources, production of both the goods cannot be increased . More of Good-X can be produced only with less of Good-Y

PPC is concave to the point of origin because to produce each additional unit of Good-X, more of Good-Y will have to be sacrificed than before. Opportunity cost of producing every additional unit of Good-X tends to increase in terms of the loss of production of Good-Y.

In other words, transformation(or shifting) of resources from one use to the other will obey the law of increasing marginal opportunity costs.

In other words PPC is concave to the origin, because as more and more resources are shifted from the production of one good (opportunity-1) to the production of other good (opportunity-2), marginal opportunity cost tends to rise.