Production Possibility Curve

Name Instructor Course Date Production possibility curve Production is the process where the related goods (inputs) are transformed into products suitable for consumption, and there is added value in production. The Production Possibility Curve identifies the different possible combinations of the two types of goods that can be produced in a country when the available resources at a given moment are used efficiently. The points inside the frontier represent combinations where resources are not used efficiently. This indicates that the production of one good cannot be increased without diminishing that of the other. An assumption is made that for the production of two goods the capital and labor are the productive factors utilized. The available resources an...