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    Nanda Mam PPF

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    Aditya Shrivastava
    The production possibility curve (PPC) shows the maximum combinations of two goods an economy can produce with limited resources and technology. In an example, an economy can produce either 15 units of cloth or 5 units of wheat alone, but can produce various combinations in between, like 14 units of cloth and 1 unit of wheat. These possibilities are plotted on a graph with cloth on the x-axis and wheat on the y-axis, forming a concave curve known as the PPC. The PPC illustrates the key economic idea of scarcity, trade-offs, and opportunity costs in production.

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    Nanda Mam PPF

    Uploaded by

    Aditya Shrivastava
    16 views13 pages
    The production possibility curve (PPC) shows the maximum combinations of two goods an economy can produce with limited resources and technology. In an example, an economy can produce either 15 units of cloth or 5 units of wheat alone, but can produce various combinations in between, like 14 units of cloth and 1 unit of wheat. These possibilities are plotted on a graph with cloth on the x-axis and wheat on the y-axis, forming a concave curve known as the PPC. The PPC illustrates the key economic idea of scarcity, trade-offs, and opportunity costs in production.

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    The production possibility curve (PPC) shows the maximum combinations of two goods an economy can produce with limited resources and technology. In an example, an economy can produce either 15 units of cloth or 5 units of wheat alone, but can produce various combinations in between, like 14 units of cloth and 1 unit of wheat. These possibilities are plotted on a graph with cloth on the x-axis and wheat on the y-axis, forming a concave curve known as the PPC. The PPC illustrates the key economic idea of scarcity, trade-offs, and opportunity costs in production.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    16 views13 pages

    Nanda Mam PPF

    Uploaded by

    Aditya Shrivastava
    The production possibility curve (PPC) shows the maximum combinations of two goods an economy can produce with limited resources and technology. In an example, an economy can produce either 15 units of cloth or 5 units of wheat alone, but can produce various combinations in between, like 14 units of cloth and 1 unit of wheat. These possibilities are plotted on a graph with cloth on the x-axis and wheat on the y-axis, forming a concave curve known as the PPC. The PPC illustrates the key economic idea of scarcity, trade-offs, and opportunity costs in production.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Production

    Possibility
    Curve
    Meaning of
    Production
    Possibility Curve
    Production Possibility Curve is a curve which shows
    all possible combinations of two goods that can be
    produced by making full use of given resources
    and technology in an economy. Is also known as
    Transformation Curve and Production Possibility
    Frontier.
    For
    example.....
    Let us assume that the economy has
    decided to produce wheat and cloth.
    Different combinations of wheat and cloth
    can be represented through the schedule
    and diagram displayed in the next slide.
    Brief description
    about the
    schedule.
    The table in the previous slide shows hypothetical possibilities
    of production of wheat and cloth. if economy uses all its
    resources to produce cloth in maximum 15 units of cloth can
    be produced and if enter resources are used to produce wheat
    in maximum 5 units of wheat are produced. Exists various
    other combinations between A and F possibilities for example
    one million quintals of wheat and 14 million metres of cloth and
    so on........when is data is plotted in a graph we get PPC, which
    is concave in shape and it is shown in the next slide.
    Description of
    graph.
    In the graph in the previous slide we can see that production of cloth is
    measured on X-axis and production of wheat is measured on Y- axis. AF is
    the PPC which shows various combinations of wheat and cloth. Point A
    shows maximum production of wheat and that is 15 million quintals and
    point F shows maximum production of cloth that is 5 million meters. In
    between point A and F. There are various possibilities that is points B, C,
    D and E a production of wheat and cloth. When points A To F are jointed,
    we get curve called production possibility curve which is concave in
    shape. It is concave because of increasing Marginal Opportunity Cost.
    Properties of
    Production
    Possibility Curve
    Thank
    you.
    PPT by.....
    Mrs. Nanda
    Gourshettiw
    ar.

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