Draw a production possibility curve.What do the points inside amd outside this curve indicate ? Explain
Dear Student,
Production possibility curve (PPC) shows the different combination of two goods which can be produced with given resources and technology with the assumption that resources are utilised fully and efficiently, and technique of production remains constant.
All points inside and on the PPC indicate the attainable combinations of output, with the given resources and technology.
Any point outside the boundary line of PPC shows unattainable combination of output of two goods.
Regards,
Production possibility curve (PPC) shows the different combination of two goods which can be produced with given resources and technology with the assumption that resources are utilised fully and efficiently, and technique of production remains constant.
All points inside and on the PPC indicate the attainable combinations of output, with the given resources and technology.
Any point outside the boundary line of PPC shows unattainable combination of output of two goods.
Regards,