Interrelated to each other

The properties of a production possibility curve are:
(a) Downward sloping from left to right: Resources are given and fixed, so increase in production of one commodity is possible only if production of another commodity is reduced.
(b) Concave from the origin: Production possibility curve is concave from the origin due to increasing marginal opportunity cost.

Marginal Rate of Transformation of a particular good along Production Possibility Curve is the amount of a particular good which is sacrificed to increase the production of the other goods by 1 unit. It is also called Marginal Opportunity Cost.
For example,

Mathematically,
Marginal Rate of Transformation
(MRT)=\({Units \ of \ One \ good \ sacrificed\over More \ units \ of \ Other \ Goods \ Produced}={\Delta y\over \Delta X}\)
Where, \(\Delta X\)=Change in production of X.
\(\Delta Y\)=Change in production of Y.

Opportunity cost is the value of a factor in its next best alternative use.  In other words, the opportunity cost of any commodity is the amount of other good which has been given up in order to produce that commodity.
Production Possibility Schedule

Marginal Opportunity Cost  \(={\triangle\ Loss\ of\ Output\over \triangle\ Gain\ of\ Output}\)

India, being a labour intensive country have a good stock of human resource and is also faced with the problem of high rate of unemployment.  So, it would be preferable to opt for a technology which is labour intensive in nature, as a highly capital intensive technique of production would require less labour, causing the problem of unemployment to deteriorate.

 It is good news for a country like India that the prices of petrol and diesel have fallen, however, it can never solve the central problem of 'what to produce' to its full extent, as human wants are unlimited in comparison to the supply of natural products like petrol or diesel.

It is the problem which is concerned with the distribution of income among all factors of production like wages to the labour, rent to the land, interest to the capital and profit to the entrepreneur. e.g. in a country like India where disparity of income is high, the government employs its resources for production of those goods which are socially desirable like railways, rather than on the production of high-end cars like Ferrari.

An economy has millions of commodities to produce.  It has to decide which goods and services to be produced and that should be in sufficient quantity, as all the goods cannot be produced due to scarcity of resources. e.g. an economy has to decide whether to produce luxury goods or inferior goods, capital goods or consumer goods.
This problem has two dimensions:
(i) Types of goods to be produced.
(ii) Quantity of goods to be produced.

The problem of 'how to produce' is a problem relating to choice of techniques.  Broadly, it is the problem of deciding the techniques of production which are to be used.
There are two type of techniques of production, which are as follow:
(i) Labour intensive technique It is that technique in which labour is used more than capital.
(ii) Capital intensive technique It is that technique in which capital is used more than labour.

This is very correct to say that only scarce goods are high in price.  This can be supported by the water, diamond paradox.  Though water is very useful for all living being, however, it is very low priced as it is available in plenty.  On the other hand, diamond which is not so useful is still very high in price due to its relative scarcity.

Opportunity cost is the damage to the ecology in the form of air pollution and water pollution. Thus, our moral value of environmental conservation is violated here.

Wants are more in the developing countries like India as compared to the resources. This is mainly because of over population to satisfy them. Thus, the problem of choice becomes more difficult.

The central problem of 'for whom to produce' is related with the distribution of goods that have been produced in the economy. National income earned from goods and services is the joint effort of all the factors of production. Distribution of national income among three factors can be done on the basis of contribution of an individual factor in the production of goods and services.
A factor which contributes more gets a higher share In the total output produced in the economy.

With the government promoting foreign capital, with the widening of the market, the domestic producers will have to meet the work-ethics and quality of the foreign products in order to survive in the cut-throat competition. In terms of PPF if the production was taking place inside the PPF, then by excelling in quality to meet global standards, production capacity will improve and march outwards to be on the given PPF. Moreover, promotion of foreign capital will also lead to increase in resources and technology through foreign investment and hence the PPC will shift rightward also.

With the death of lot of people due to severe earthquake, working force in a country will fall. Similarly, destruction of factories will cause a reduction in the stock of capital in a country. Thus, earthquake causes decrease in labour 'and capital resources of a country. This decrease in resources causes a shift of production possibilities curve to the left showing less production of both the goods than before.

The central problems of an economy are as follows:
(a) What to produce is defined as the problem of choice between different goods that can be produced from the given scarce resources. An economy has millions of commodities to pr.oduce. It has to decide whether to produce luxury goods or necessities. It may have to decide between capital goods and consumer goods and so on.
(b) How to produce is defined as the problem of choice between different techniques of production available in the economy. Every economy faces the problem as to how resources should be combined for the production of a given commodity. Depending upon the abundance of a particular resource, an economy may choose between labour-intensive and capital- intensive techniques.
(c) For whom to produce is defined as the problem of choice between different ways of functional and physical distribution of income and output in the economy. What goods should be consumed and by whom depends upon how national product/income is distributed among people/factors of production. All central problems arise due to scarcity of available resources, having alternative uses.

Increasing sacrifice of Green Chilli for each unit of sugar produced gives concave shape to the PP curve as shown with the help of rate of sacrifice or MOC..