What is production possibility curve what is their use in the theory of international trade?
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Production possibility curve is a curve which shows different combinations of two goods which can be produced by the given resources and technique of production. It is also known as production possibility boundary, production possibility frontier, transformation line and transformation curve.
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Heya....
Production Possibility Curve is a curve showing different possible combinations of two goods that can be produce at the available resources...
Assumptions.... of PPC.....
1 resources are fully and efficiently use...
2 resources are given.....
3 Technology remains constant ...
It's use in International trade theory..
**It helps to identify once country's potential or actual output....
**** By it's estimation we can conclude once country's exports or imports and employment level....
Production Possibility Curve is a curve showing different possible combinations of two goods that can be produce at the available resources...
Assumptions.... of PPC.....
1 resources are fully and efficiently use...
2 resources are given.....
3 Technology remains constant ...
It's use in International trade theory..
**It helps to identify once country's potential or actual output....
**** By it's estimation we can conclude once country's exports or imports and employment level....
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