Production possibilities curve. An introduction. Abstractions and Assumptions of a PPC. Compare 2 variables; goods or services Trade-offs or opportunity cost involved All available resources are fully employed All available technology is fully employed
Why is the PPC concave?
What does point (E), inside the PPC illustrate?
What is the significance of point (F), outside the PPC?
Under what conditions can point F be reached?
Moving from point B to point A, could eventually expand the frontier from G,G to H,H