Production Possibilities Curve (PPC)

The Production Possibilities Curve (PPC), also known as the Production Possibilities Frontier (PPF), is a graphical representation of the maximum possible output combinations of two goods or services that an economy can produce, given its available resources and technology. The PPC is a fundamental concept in economics that illustrates the trade-offs and opportunity costs associated with resource allocation.

The PPC is typically depicted as a concave curve, with one good on the x-axis and the other on the y-axis. The curve represents the maximum possible combinations of the two goods that can be produced with the available resources and technology. Points inside the curve represent inefficient use of resources, while points outside the curve are unattainable given the current resource constraints and technology.