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.
Answer and Explanation: 1
The above image represents a PPC curve. The points along the PPC curve represents the maximum production possibilities of goods X and Y...
See full answer below.
Learn more about this topic:
fromChapter 3 / Lesson 8
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.