how is it possible to increase the production of one commodity without sacrificing the production of other commodity when all the resources are utilized fully ?
Answers
It is indeed possible to increase the production of one commodity without sacrificing the production of another commodity.
This can be done through the use of the PPC or PPF, i.e. the production possibility curve and also known as production possibility frontier.
A PPC shows the a combination of goods, and how they are being utilized and output is being produced respectively.
You can search online and images will appear.
When all the resources are utilized fully then only by creating a situation which will shift this curve, can lead to the above mentioned statement being possible.
So which factors allow, a PPC to shift outward.
That comes with growth of the country.
1- If there is an adoption of new production methods.
2- New technology
3- More capital intensive work
4- Increasing labor force
5- Discovery of new raw materials