what does a production possibilities frontier show
Economics - Financial Markets
Stacey Warren - Expert brainly.com
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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.
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.
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.