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The production possibility frontier (PPF) illustrates the maximum output combinations of two goods or services that an economy can achieve, given its resources and technology. It demonstrates trade-offs and opportunity costs, showing how increasing production of one good requires reducing the production of another. Points on the frontier represent efficient production levels, while points inside the curve indicate inefficiency, and points outside are unattainable with current resources. The shape of the PPF can also indicate the nature of opportunity costs, often being concave due to increasing marginal costs.
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How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
What effect does it make if resources increase in Production Possibilty Frontier?
The effect of increased resources in a production possibility frontier, or PPF, is an imbalance in the graph. Since a PPF is created based on set production factors, the results of the graph would be skewed with an increase in resources unless other production factors were increased accordingly.
What tool helps a producer set up an efficient system of production?
a production possibilities frontier graph
What is the effect of war on a production possibility frontier?
production possibility frontier shift leftward
Why can production take place on or inside the frontier?
This is known as the law of diminishing returns and can occur because factor on the frontier is deemed to be production efficient and production inside frontier.
How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
What effect does it make if resources increase in Production Possibilty Frontier?
The effect of increased resources in a production possibility frontier, or PPF, is an imbalance in the graph. Since a PPF is created based on set production factors, the results of the graph would be skewed with an increase in resources unless other production factors were increased accordingly.
Where would a point of underutilization appear on a product possibilities graph?
below or to the left of the production possibilities frontier
What tool helps a producer set up an efficient system of production?
a production possibilities frontier graph
What is the effect of war on a production possibility frontier?
production possibility frontier shift leftward
Why can production take place on or inside the frontier?
This is known as the law of diminishing returns and can occur because factor on the frontier is deemed to be production efficient and production inside frontier.
What tool helps producers set up an efficient system of production?
a production possibilities frontier graph
In a production possibilities frontier model a point inside the frontier is?
Attainable.
How can you reach beyond the production possibility frontier?
With the introduction of new technology and new resources will shift the production possibility frontier.
Effect of net migration on a country's production possibilities frontier?
explain the effect of net migration on a country's production possibilites frontier
What are the effects of discrimination in the production possibilities frontier?
The effects of discrimination in the production possibilities frontier is that a given business does not fulfill its ful potential.
Under what conditions is the production possibilities frontier linear?
under what conditions an econoy would be operating inside its production possibility frontier?
