Question

Explain Production possibility curve with the help of diagram.

06 Jul 2022
Answer :
Word Count : 871

what to know about production possibilities curves. The points show how much of each goods will be produced when resources shift for more production of one good, and less of the other. It demonstrates the concept of opportunity cost. It doesn’t indicate how much of each good should be produced, but the production sacrifice needed to make more of the other good.

production possibilities curve in economics measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.

The production possibilities curve is a visualization that demonstrates the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less ______ ____ ______ __________ ____ ___ _______ ____.
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