Production Possibility Curve (PPC)

Production possibility set refers to different possible combinations of two goods that can be produced from a given amount of resources and a given level of technology
Production possibility curve or frontier (PPF) shows the various alternative combinations of goods and services that an economy can produce when the resources are all fully and efficiently employed. PPC shows the obtainable options.

There is a maximum limit to the number of goods and services which an economy can produce with the given resources and the state of technology. The resources can be used to produce various alternative goods which are called production possibilities and the curve showing the different production possibilities is called the production possibility curve.


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