What is a production possibility frontier?
Production possibility Frontier is the graphic presentation of various possibilities of production. It is also called production possibility curve. It represents the possibilities of producing two goods using fixed resources.
We will understand it with the following table and graphic representation –
Possibilities | TV Sets | Computers |
1 | 0 | 2000 |
2 | 1000 | 1800 |
3 | 2000 | 1500 |
4 | 3000 | 1100 |
5 | 4000 | 600 |
6 | 5000 | 0 |