What is Production possibility frontier explain?

What is Production possibility frontier explain?

In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases.

What do you mean by production possibility set in simple words?

The set of all non-negative outputs of goods and services that can be produced using the economy’s available factor inputs.

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 Class 12?

Answer: Production possibility frontier is a curve which depicts all the possible combinations of two goods which can be produced with given resources and technology in an economy.

What is PPC curve Class 11?

Production Possibility Curve (PPC) is the graphical representation of the possible combinations of two goods that can be produced with given resources and level of technology. Since the choice is to be made between infinite possibilities, economists assume that there are only two goods being produced.

What is production possibility curve Class 11?

Production possibility frontier or production possibility curve (PPC) PPC is a curve which shows all possible combinations of two set of goods that an economy can produce with available resources and given technology, assuming that all resources are fully and efficiently utilized. COMBINATION.

What is the shape of PPC?

PPC is concave-shaped because more and more units of one commodity are sacrificed to gain an additional unit of another commodity. However, if there is unemployment or inefficiency in resource utilisation, then we can produce at any point inside the PPC. This concept explains the production possibilities curve.

What is production possibility curve PDF?

Production possibilities frontier (PPF) shows the maximum attainable combinations of two products that may be produced if we use our resources efficiently. Sometimes economists call this Production Possibilities Curve (PPC). PPF or PPC, we mean the very same thing by them.