Production possibilty curve/ frontier or PPC
Production possibility curve Assumptions: 1-Resources are given and cannot change. 2-Given resources are fully and efficiently utilised. 3-Technology is constant. Production possibility schedule: It is the tabular representation of different possible combination of two goods which can be produced assuming above assumptions. COMBINATIONS A B C D E RICE(in Kg) 100 90 70 40 0 WHEAT(in Kg) 0 10 20 30 40 Production possibility curve: It is a curve showing different possible combination of two goods which can be produced with given resources assuming above combinations. figure -1 Properties of slope of PPC: 1- Slope of PPC = loss of qn. of goodY gain of qn. of good X 2-PPC is concave. 3-PPC is downward left to right because to produce one unit of good-X we have to sac...