Transcription of Production Possibilities Curve
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Production Possibilities Curve
Production Possibilities Curve Production Possibilities Trade offs and opportunity costs can be illustrated using a Production Possibilities Curve . PPC shows all the possible combinations of 2 goods or services. Given 2 assumptions: 1. Fixed resources 2. Maximum efficiency. Video Scarcity Opportunity Cost Efficiency Economic Growth Opportunity Cost Opportunity cost of any choice What we forego (give up) when we make that choice All Production carries an opportunity cost To produce more of one thing Must shift resources away from producing something else .. Production Possibilities Graph shows alternative ways that an economy can use its resources. Cost - Production Possibilities graph shows the cost of producing more of one item. Cost Production Possibilities Frontier Production Possibilities Frontier is the line that shows the maximum possible output for that economy.
Production Possibilities 1.3 Trade offs and opportunity costs can be illustrated using a Production Possibilities Curve. PPC—shows all the possible combinations of 2 goods or services. Given 2 assumptions: 1. Fixed resources 2. Maximum efficiency.
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