Question

What is production possibility curve??

Answer 1

The production possibility frontier is a curve that depicts all maximum output possibilities for two goods, when a set of inputs are given which consist of resources and other factors. It is assumed that all the inputs are used efficiently.

The production possiblilty curve is a graphical representation of the alternative combinations of the amounts of two goods or services that an economy can produce by transferring resources from one good or service to the other. The curve is used to determine the quantity of a nonessential good or service an economy can afford to produce without disturbing the required production. It is also called the transformation curve.

Answer 2

Hi friend
The production possibility curve is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.
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