Login

Why PPC is also called PPF

Dear Student,
The Production Possibility Curve (PPC) is a graphical representation of two goods that can be produced in the economy at a given time where resources are fully employed, factors of production are given and constant and the technology or techniques is given and constant.

This curve is also called as Production Possibility Frontier (PPF). Basically PPF and PPC are the two names for the same concept and idea. That is why PPC is also known as PPF.

Regards

  • -2
View Full Answer
The Production Possibility Frontier (PPF) is an economics term referring to a graphical representation of the possible combinations or rates that two different commodities will be produced at given the same amount of resources, manpower, and other factors of production available within a certain period of time. Production Possibility Curve (PPC) is simply another term used to refer to this. Other terms used in the same way are Production Possibility Boundary and transformation curve
  • -4
What are you looking for?