Production Possibility curve



Production Possibility curve
Production Possibility curve shows the different combinations of two different goods which could be produced by the given resources. If the point lies on the curve that means that all the resources are being utilized in the best possible manner, but if the point lies within the PPC that implies that there is some inefficiency which could be removed by using the resources in the best possible way. There are cases when the point lies outside the PPC, it means that the company was able to increase its resources by the use of some technology.






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