Production Possibility Curve/ Frontier – PPC/PPF
The Production Possibility Frontier (PPF) or Production Possibility Curve (PPC) is the graphical expression of both the concepts of scarcity and opportunity cost. It shows the maximum amounts of production that can be obtained by an economy. (Assuming that the technological knowledge and quantity of input is fixed and the economy operates at its’ level of productive efficiency ).
In a very simple sense, the graph that depicts opportunity cost between any two given items produced by an imaginary economy is known in economics as the ‘PPC’ or ‘PPF’.
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