The production possibilities frontier (ppf), Microeconomics

The Production Possibilities Frontier (PPF)

The PPF curve exhibits the probable combinations of goods and services accessible to an economy, given that all productive resources are completely and  efficiently employed. When the economy is at point i, resources are not completely  employed and/or they are not used effectively. Point g is desirable as it gives more of both the goods, but not achievable by given the amount of resources available. Point d is one of the like combinations of goods manufactured when resources are completely and efficiently employed.

Scarcity and the PPF

To enhance the quantity of farm goods by 10 tons, we should sacrifice 100 tons of factory goods. The PPF curve is bowed out as resources are not fully adaptable to the manufacturing of the two goods. As we raise the production of one good, we sacrifice subsequently more of the other.

Posted Date: 7/24/2012 7:08:11 AM | Location : United States







Related Discussions:- The production possibilities frontier (ppf), Assignment Help, Ask Question on The production possibilities frontier (ppf), Get Answer, Expert's Help, The production possibilities frontier (ppf) Discussions

Write discussion on The production possibilities frontier (ppf)
Your posts are moderated
Related Questions
#how do you draw a demand curve on excel

Determinants of the Income Elasticity of the Demand: The determinants of income elasticity of demand are given below: The Degree of necessity of the commodity.


What is main difference between nominal money supply and real money supply?  Real money supply is the supply of real money in the economy. Real money is supplied considering th

Q. Explain about Capital Flight? Capital Flight: A destructive process in that investors (both domestic residents and foreigners) withdraw their financial capital from a countr

Ask question #what is an indifference curveMinimum 100 words accepted#

An economics branch which keep concentrate on illumination the economic decisions people make in practice, particularly when these conflict with what conventional economic theory p

Variability - The extent to which the possible outcomes of uncertain event may vary * Variability: A Scenario - Assume that you are choosing between two part time sales

Consumer Preferences Indifference curves represent all the combinations of market baskets which provide the same level of contentment to the person. Consumer Preferences