Question

What is production possiblity curve and its advantages ?​

Answer 1

the production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture. PPF also plays a crucial role in economics.

Answer 2

Answer:

Heya ✌️✌️

A production possibility curve measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship. The manufacture of most goods requires a mix of all four. Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other.

✨Its advantages:-

(i) Efficient selection of the goods to be produced,

(ii) Efficient allocation of resources in the production of these goods and efficient choice of methods of production,

(iii) Efficient allotment of the goods produced among consumers.

Hope it helped.