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production possibilities frontier (PPF): a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available. productive efficiency : when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service)
Key takeaways. A production possibilities frontier, or PPF, defines the set of possible combinations of goods and services a society can produce given the resources available. Choices outside the PPF are unattainable (at least in any sustainable way), and choices inside the PPF are inefficient.
Figure 2.3 A Healthcare vs. Education Production Possibilities Frontier This production possibilities frontier shows a tradeoff between devoting social resources to healthcare and devoting them to education. At A all resources go to healthcare and at B, most go to healthcare.
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Oct 27, 2021 · A production possibilities frontier (PPF)—also known as a production possibilities curve (PPC)—is a graph showing combinations of two outputs that can be produced when both are made using the same finite, or scarce, resources.
The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation ( MRT ). The slope defines the rate at which production of one good can be redirected (by reallocation of productive resources) into production of the other. It is also called the (marginal) "opportunity cost" of a commodity ...
3.2 The Production Possibilities Frontier (PPF) Given his resource constraints, Chuck is going to be limited in the number of fish he can catch, and the number of coconuts he can break open. Some “bundles,” or combinations of outputs, will be possible for Chuck to produce; others will not. We will call Chuck’s “feasible set” of output ...
The production possibilities frontier shows the combinations of goods and services that can be produced efficiently in an economy at a point in time. The production possibilities frontier is downward sloping: producing more of one good requires producing less of others.
