given a production possibilities curve between wheat and corn, what does the equal profit line when the price of wheat is 0? The slope is 0, but where is the horizontal line located? (If the price of wheat is 0, no wheat is grown)
Economics - Financial Markets
Stacey Warren - Expert brainly.com
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I'm sure it's a horizontal line, I'm just not sure if it is the x axis or higher...
Alright, In case of line, what do u say.... its above X-axis or below ?
Yes, since the product on the x axis has a price of 0, and the slope of the equal profit line is the price of the good on the x axis over the price of the good on the y axis, the slope must be 0.
So is the equal prift line the x axis or above it is the question
hmm, I'm a little confused which one is the equal profit line?
Tangent of a Curve ( From Figure)
• tangent is drawn at only one pt on the curve
• a straight line which ‘touches’ the curve only at the one point
• slope of the tangent represents the slope of the curve
• Note: when person (object) changes direction the tangent is horizontal so the slope is ZERO
The Line which passes through point 'a' comes as the equal profit line... does it help ?
Also, Slope of a Curve
• “Slope” = number which describes the change in a curve !!