Production Possibility Curve PPC Assignment Help

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Production Possibility Curve (PPC)

Production Possibility Curve (PPC) shows distinct combination of two goods that can be produced with given resources and available techniques. According to PPC curve, if we want to produce more of one good we will have to sacrifice the production of the other good by some units. To draw PPC curve first we need to draw Production possibility schedule.

2.1 Production Possibility Schedule

Table 2.1 Production possibility schedule

For instance, if an economy produces both caps and balls and if it wants to increase the production of caps it will have to lower the production of balls. At point A, production of balls is maximum i.e. 80 while that of caps is zero whereas at point E production of caps is maximum i.e. 75 and balls is zero. Further, points B, C and D show distinct combination of two goods in which the production of one has to be sacrificed to get more units of other.

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Microeconomics Systems - Part A

1. Economy and its Central Problems
2. Production Possibility Curve (PPC)
3. Comparative Economic Systems
4. National Income
5. Occupational Structure

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