The production possibility curve production possibility frontier
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The Production Possibility Curve (Production Possibility Frontier) PowerPoint PPT Presentation


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The Production Possibility Curve (Production Possibility Frontier). PPC. The PPC is a visual representation of the various output combinations that an economy can produce between 2 AND ONLY 2 goods/services . This is a visual representation of a TRADE-OFF and OPPORTUNITY COST.

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The Production Possibility Curve (Production Possibility Frontier)

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The production possibility curve production possibility frontier

The Production Possibility Curve (Production Possibility Frontier)


The production possibility curve production possibility frontier

PPC

  • The PPC is a visual representation of the various output combinations that an economy can produce between 2 AND ONLY 2 goods/services.

  • This is a visual representation of a TRADE-OFF and OPPORTUNITY COST.

  • In theory, this model can be used with ANY 2 goods/services.


Basic example

Basic Example:


Quantifying trade offs opportunity costs

Quantifying Trade-Offs/Opportunity Costs


Maximum output

Maximum Output


Shifts in the ppc examples

Shifts in the PPC - Examples

The PPC will shift inward on both the X and Y axes.


Shifts in the ppc examples1

Shifts in the PPC - Examples


Shifts in the ppc examples2

Shifts in the PPC - Examples


Shifts in the ppc examples3

Shifts in the PPC - Examples


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