Production Possibility Frontier. The Production Possibilities Frontier. Let’s introduce the Production Possibilities Frontier better known as the PPF. The PPF is a basic workhorse in economics. Important for understanding some basic issues in economics. The PPF.
The marginal opportunity cost of guns in terms of butter is increasing as we move down the PPF!
The PPF is typically bowed-out or linear.
It is not bowed-in
Least Efficient Producers
Most Efficient Producers
RAM (K chips/day)The International Supply Curve for RAM