Scribd Logo
Upload

Welcome to Scribd!

  • The Production Possibility Curve: Presented By: Arpan Acharya

    Uploaded by

    Arpan Acharya
    12 views6 pages
    The Production Possibility Curve (PPC) shows the maximum quantities of two goods, such as military and food, that an economy can produce given available resources and technology. The PPC captures the concepts of scarcity, choice, and tradeoffs by demonstrating all the possible combinations of the two goods and that producing more of one requires producing less of the other. Points along the curve represent efficient production combinations while points inside the curve are inefficient and points outside are impossible given the economy's constraints.

    Original Description:

    Original Title

    PPC presentation

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Production Possibility Curve (PPC) shows the maximum quantities of two goods, such as military and food, that an economy can produce given available resources and technology. The PPC captures the concepts of scarcity, choice, and tradeoffs by demonstrating all the possible combinations of the two goods and that producing more of one requires producing less of the other. Points along the curve represent efficient production combinations while points inside the curve are inefficient and points outside are impossible given the economy's constraints.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views6 pages

    The Production Possibility Curve: Presented By: Arpan Acharya

    Uploaded by

    Arpan Acharya
    The Production Possibility Curve (PPC) shows the maximum quantities of two goods, such as military and food, that an economy can produce given available resources and technology. The PPC captures the concepts of scarcity, choice, and tradeoffs by demonstrating all the possible combinations of the two goods and that producing more of one requires producing less of the other. Points along the curve represent efficient production combinations while points inside the curve are inefficient and points outside are impossible given the economy's constraints.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    The Production

    Possibility
    Curve
    Presented by: Arpan Acharya
    Defining the PPC!
    Production possibility curve (PPC) shows the maximum quantity of goods that can be
    efficiently produced by an economy, given its technological knowledge and the quantity
    of available inputs.
    Possibilitie X(military) Y(Food)
     shows all the different combinations s
    of output of two goods that can be A 0 100
    produced using available resources B 1 80
    and technology.
    C 2 60
    D 3 40
    PPF captures the concepts of E 4 20
    scarcity, choice, and tradeoffs. F 5 0
    Graphical
    Explaination
    A is the extreme where everything
    is spent on food and nothing on
    military.

    F is the opposite extreme where


    everything is spent on Military and
    nothing on food.

    The shape of the PPF depends on


    whether there are increasing,
    decreasing, or constant costs
    Efficiency
    P -> Feasible and
    inefficient

    A, B, C, D, E, F ->
    Efficient

    Q -> Impossible
    Rich and Poor
    Countries
    OA > OQ, OF>OP

    Poor country is
    producing efficiently
    then rich country
    Thanks!

    You might also like