Question

Define the term production possibility?
• What is production possibility set?
• What do you mean by production possibility frontier?
Prepare an imaginary production possibility schedule.
• What is opportunity cost?
Draw an imaginary production possibility curve and plot
the points representing
A. Full employment of resource
B. Under utilisation of resource​

Answer 1

Hey Mate !

The Production Possibilities Curve, also known as the production possibilities frontier, is a graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently.

The set of all non-negative outputs of goods and services that can be produced using the economy's available factor inputs.

Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is "the loss of potential gain from other alternatives when one alternative is chosen". The idea of an opportunity cost was first begun by John Stuart Mill.

Hope It Helps u !