anonymous
  • anonymous
what does a production possibilities frontier show
Economics - Financial Markets
  • Stacey Warren - Expert brainly.com
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katieb
  • katieb
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anonymous
  • anonymous
|dw:1378591224348:dw| it shows what a producer can and cannot make. Anything INSIDE the curve shows an inefficient use of resources. Anything ON the curve shows a 100% efficient use of resources. Anything OUTSIDE the curve is impossible to produce based on available resources/capabilities.
anonymous
  • anonymous
each axis represents a different good/service. So it also shows the opportunity cost (cost in terms of another good or service) of producing one or the other good.
anonymous
  • anonymous
Hello @heyman, That's a good question. The PPF or production possibility frontier shows the state of an economy and the resources it has and there is a limit to them. That would mean only certain amounts of goods and services can be produced- only a few combinations.

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anonymous
  • anonymous
the maximum combination of goods able to be produced, increasing production of one item along the curve will always lessen the production of the other, unless technology or resources change.

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