production possibility frontier


PPF. A curve that compares the trade offs between two goods produced by an economy in order to demonstrate the efficient use of resources. Points along the curve are considered efficient and obtainable, and show the maximum amount of one good that can be produced in relation to another. Points within the curve are considered obtainable but inefficient. Points outside the curve are considered impossible to obtain. A classic example considers an economy that can produce either guns or butter, and shows how a government can spend a finite amount of resources on guns (defense), butter (non-defense) or a combination of the two.

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The production possibility frontier was a thing that I paid great attention to and new would be a factor for me.

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You should try and see if you can figure any way to improve your business when using the production possibility frontier.

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Ted said that a normal person could not tell the production possibility frontier between Apple and Samsung, with out having an instruction booklet because they are basically on the same level.

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productive efficiency transformation curve