Problem 36

Introduction

Concept Introduction: The production possibilities frontier is a production possibility curve that describes how there would be various combinations of two goods that can produce from the resources and technology given, in comparison to the resources which are efficiently and fully utilized per unit time. It is a curve which describes how there would be a maximum output possibilities that are related to the two goods, with a given set of inputs that can consist of the resources and other factors. The curve PPF determines how the inputs can be used efficiently.