A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the combination of projects it can build

1) If the amount of land available to the company increases, the PPC will _.
a) Shift to the left
b) Shift to the right
c) remain unchained

2) The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in. In this case, the PPC will _.
a) Shift to the left
b) Shift to the right
c) remain unchained

Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.

Answer 2) Option C) Remain Unchanged.

Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.

In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.

ogorwyne ogorwyne · Answer 2 · 2022-02-14T14:09:39+01:00

ogorwyne ogorwyne

14-02-2022

1. If the land increases the PPC would shift to the right.

2. The PPC would remain unchanged.

What is a ppc?

This is also referred to as a production possibility curve. This is a curve that is used to show the production of two goods.

The curve shows how effective and efficient the scarce resources can be allocated for the production of the goods.