What is production possibility frontier in simple words?
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
What is production possibility frontier explain with an example?
For example, if a company develops a new technology that can speed up making cheese, the output would also increase. This increase in production will shift the curve outwards as long as the other production factors remain constant. On the other hand, the curve can also shift inwards during times of economic hardships.
Why it is called production possibility frontier?
Definition: Production possibility frontier is the graph which indicates the various production possibilities of two commodities when resources are fixed. The production of one commodity can only be increased by sacrificing the production of the other commodity.
What do you mean by production possibilities of economy?
Answer: Production possibilities of an economy refer to different combinations of goods and services which an economy can produce from a given amount of resources and a given stock of technology.
How do you explain the PPC curve?
Production Possibilities Curve Review – YouTube
What is a production possibility frontier Brainly?
The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods ,given a set of input consisting of resources and other factors . The PPF assumes that all input are used efficiently .
What is PPC explain with diagram?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
What is a Production possibility frontier Brainly?
How do you draw a production possibility frontier?
How to draw a PPF or PPC – YouTube
What is production possibility curve explain with diagram?
The production possibility curve represents graphically alternative production possibilities open to an economy. The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.
What is the difference between production possibility curve and production possibility frontier?
How do you find the production possibility frontier?
To calculate the production possibility frontier, choose two variables to compare and create a column within the spreadsheet for each variable. After filling the columns with each variable’s values, each row will have values that represent a data set that can be compared to determine production possibility values.