Definition of PRODUCTION POSSIBILITY CURVE?
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Answer:
production possibility curve (PPC) is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for two products that can be ...
Answer:
Production Possibility Curve (PPC) is an alternative combination of the production of two goods with the given level of resources and technology.
eg: If a company produces 20,000 watermelons and 1,20,000 pineapples. On the diagram, its point B. If the production of oranges needs to be more, then the production of the apple should be lesser. On the graph, point C indicates that if it production of watermelons has to be 45,000, then the company can deliver only 85,000 pineapples. With this trade-off, the curve shows the idea of opportunity cost.
