Multiple Choice
The production possibilities frontier (PPF) illustrates:
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
According to central place theory, the threshold is defined as the:
A
geographical area served by a central place
B
minimum population or demand required to support the provision of a good or service
C
maximum distance consumers are willing to travel to purchase a good or service
D
highest price at which a good or service can be sold
Verified step by step guidance1
Understand the concept of central place theory, which explains the spatial arrangement and distribution of services and settlements in an area.
Recognize that the 'threshold' in central place theory refers to the minimum market size needed for a service or good to be economically viable.
Identify that the threshold is not about the geographical area served, the maximum travel distance, or the price, but rather about the minimum population or demand necessary to support the service.
Formally define the threshold as the minimum population or demand required to support the provision of a good or service, ensuring that the service provider can cover costs and remain profitable.
Use this understanding to distinguish the threshold from other related concepts such as range (maximum distance consumers travel) and market area (geographical area served).
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Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency practice set
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