1 Answer | Add Yours
I assume that you are asking about production possibilities curves/frontiers. I have edited your question to reflect this.
A production possibilities curve (PPC) shows what outcomes are efficient in a given economy. It shows what combinations of two kinds of products the economy can produce. In a PPC, the curve shows the maximum possible output. A point on the line is something the economy can achieve if it uses all of its resources as efficiently as possible. A point below the curve is inefficient. The economy could produce more than that if it were being run more efficiently. A point above the curve is impossible in the current circumstances. The economy would need more resources in order to achieve that outcome.
We’ve answered 319,857 questions. We can answer yours, too.Ask a question