What is production possibility curve explain?

What is production possibility curve 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 is production possibility curve in simple words?

MKT‑1.C.1 (EK) , MKT‑1.C.2 (EK) 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 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 production possibility curve Class 11?

It is a graphical representation of all the possible combinations of two goods that can be produced by optimum (fuller) utilization of available resources and given technology It gives us the maximum limit of goods & services that could be produced so, it is also known as Production Possibility Boundary or Production …

What is production possibility curve and its features?

Production Possibility Frontier or Production Possibility Curve is the curve which shows the combinations of two goods and services that can be produced with fuller utilisation of a given amount of resources in the most efficient way and with a given production technology.

What is the meaning of production possibilities?

Definition: The Production Possibilities Curve, also known as the production possibilities frontier, is a graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently.

What is PPC and its features?

What is PPC and its properties?

The two basic property of production possibility curve are: It slopes downward from left to right- Production possibility curve slopes downward because both the variables involve in the equation are inversely related as one increase then other one decreases and vice versa because the resources are constant.

What is PPC in economics class 12th?

Production Possibility Curve (PPC) It is a curve which shows various production possibilities with the help of given limited resources and technology. It is also known as production possibility frontier and transformation curve. it is a tool which can help to solve the central economic problems.

What is the purpose of the PPC curve?

The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

What is production possibility curve with example?

The curve measures the trade-off between producing one good versus another. For example, say an economy produces 20,000 oranges and 120,000 apples. On the chart, that’s point B. If it wants to produce more oranges, it must produce fewer apples.

What does the point outside a production possibility curve mean?

A point that lies outside a country’s production possibilities curve means : The Country, given its current technology and available resources cannot produce this combination of goods. Presently it is unobtainable.

What does each point on production possibilities curve show?

Each point on a production possibilities curve shows the efficient utilization of resources. Each point on the curve demonstrates how much of each goodwill be generated when resources shift from producing more of one good and less good of the other.

What does production possibilities curve indicate?

Definition: Production possibilities frontier (PPF), also known as production possibility curve, indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently.

What does production possibilities curve graph show?

The production possibilities curve (PPC) is a graph that shows all combinations of two goods or categories of goods an economy can produce with fixed resources. Take the example illustrated in the chart.