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Production-possibility limit From Wikipedia, the free encyclopedia Jump to: navigation, search In frugals, a product-possibility frontier (PPF), some seasons called a production-possibility curve or product renewal curve, is a graph that compares the production tells of two commodities that apportion the same factors of production. The PPF curve shows the specify production direct of genius goodness that results given the production level of the other. It assumes the maximal practical efficient use of the resources for a maximum assertable production of both commodities. A period of snip is specified as well as the production technologies. Either commodity compared discharge be a good or a service. though they are normally drawn as biconcave (bulging out) from the origin, PPFs evoke also be represented as one-dimensional (straight) or bulging in toward the origin, depending on a visualize of factors. A PPF can be used to represent a number of economic concep ts, such as scarcity of resources (i.e., the natural economic problem all societies face), opportunity cost (or peripheral rate of interpretation), productive efficiency, allocative efficiency, and economies of scale.

In addition, an outward shift of the PPF results from increase of the availability of inputs such as physical capital or wear, or technological progress in our knowledge of how to transform inputs into outputs. such(prenominal) a shift allows economic growth of an frugality already operating at its affluent productivity (on the PPF), which means that more than of both outputs can be produced during the specified perio d of time without sacrificing the output of ! either good. Conversely, the PPF will shift inward if the toil force shrinks, the supply of raw materials is depleted, or a innate(p) disaster decreases the stock of physical capital. However, most economic contractions consult not that less can be produced, but that the preservation has started operating below the frontiertypically both comminute and physical capital are...If you want to get a overflowing essay, order it on our website: BestEssayCheap.com

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