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Explain and give a graphical representation of a production possibility curve.

Question:

Explain and give a graphical representation of a production possibility curve.

Production Possibility Curve:

The production possibility curve is a graphical represntation of the production choices of two goods that an economy can make given the amount of resources it has . The production possibility curve shows the maximum production that a country can undertake, by utilising all the resources.

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PPC Curve

The above image represents a PPC curve. The points along the PPC curve represents the maximum production possibilities of goods X and Y...

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Using the Production Possibility Curve to Illustrate Economic Conditions

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Chapter 3 / Lesson 8
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The production possibility curve demonstrates the potential profit from a given economic condition. See how this illustrates different economic conditions through evaluating scarcity, production factors, efficiency, and opportunity costs.


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