What society can produce is more or less determined by the quality and quantity of technology available to it.
These so-called production possibilities can be represented on a graph or what economists called the production possibility curve.
A production possibility curve shows the combination of two goods that can be produced by a society. It shows plausible combinations of two goods that can be produced by the individual firm or society.
These so-called production possibilities can be represented on a graph or what economists called the production possibility curve.
A production possibility curve shows the combination of two goods that can be produced by a society. It shows plausible combinations of two goods that can be produced by the individual firm or society.
The production possibility curve Is also called the production possibility frontier or transformation curve.
The above shows the combination of rice and beans that can be produced by a firm. At alternative A, the firm will only be producing 1000 bags of rice and none bag of beans. At the other extreme, alternative F, the firm will be producing 2000 bags of beans and no bags of rice.
Other alternatives show the combination of the two goods that society can produce.
It is important to note that all points on the ppf are a point of productive efficiency
Other alternatives show the combination of the two goods that society can produce.
It is important to note that all points on the ppf are a point of productive efficiency
Ok, that's all fo today, we would continue tomorrow.
If you will like to know more about production possibility curve. You can read this: http://www.eathyreading.website/2020/12/productive-possibility-curve.html
And 🙏, invite your friends to subscribe to our channel. Thank for your audience
If you will like to know more about production possibility curve. You can read this: http://www.eathyreading.website/2020/12/productive-possibility-curve.html
And 🙏, invite your friends to subscribe to our channel. Thank for your audience
www.eathyreading.website
PRODUCTIVE POSSIBILITY CURVE
A blog about sociology, computer, business, commerce, economics, estate management and other subject
Ok, yesterday, I told you that production possibility curve shows the trade off between two goods. We will be continuing from there today
There are three types of production possibility curve. There are straight-line PPC, Bowed-outward PPC, and inverted PPC. We would look at each one of them today. So feel free to relax and enjoy
A bowed-outward( or concave-downward) PPCs shows an increasing opportunity cost. Due to the law of increasing opportunity cost, most PPCs are bowed-outward
Most textbooks usually ignored inverted PPCs as they represent the rarest of PPCs.
THERE YOU HAVE IT, Pls your comments are highly appreciated. Also, remember to join our Telegram community: t.me/educationalquora
THERE YOU HAVE IT, Pls your comments are highly appreciated. Also, remember to join our Telegram community: t.me/educationalquora
Accounting, as you probably know, is the language of business. And like every other language, it has its rules and concept
These concepts are called accounting concepts. Accounting concepts are fundamental assumptions and rules that guide the recording of business transactions and the preparation of financial statements.
We will be discussing four accounting concepts today: entity concept, money measurement concept, going concern concept, and time
Period assumption.
Ok, let's get started
We will be discussing four accounting concepts today: entity concept, money measurement concept, going concern concept, and time
Period assumption.
Ok, let's get started
Entity concept
This concept states that a business entity is different from its owners. Therefore, the only transaction which affects the business is recorded in the books.
For example, if James, the owner of a bag company, bought a van for his use. This will not be recorded in the business books of account, since the van was for his use, not business use.
This concept explains why drawings are explicitly recorded in accounting even though the business owner(especially sole proprietor) do not see any difference between his funds and business funds
This concept states that a business entity is different from its owners. Therefore, the only transaction which affects the business is recorded in the books.
For example, if James, the owner of a bag company, bought a van for his use. This will not be recorded in the business books of account, since the van was for his use, not business use.
This concept explains why drawings are explicitly recorded in accounting even though the business owner(especially sole proprietor) do not see any difference between his funds and business funds
Going concern concept
This assumes that the business will continue to operate indefinitely.
Therefore, unless there is evidence to the contrary, all business transactions should be recorded with the assumption that the business will continue to operate for unforeseen future.
The assumption concept is the reason why assets are usually depreciated.
This assumes that the business will continue to operate indefinitely.
Therefore, unless there is evidence to the contrary, all business transactions should be recorded with the assumption that the business will continue to operate for unforeseen future.
The assumption concept is the reason why assets are usually depreciated.