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- Production–possibility_frontier abstract "In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph that shows the various combinations of amounts that two commodities could produce using the same fixed total amount of each of the factors of production. Graphically bounding the production set for fixed input quantities, the PPF curve shows the maximum possible production level of one commodity for any given production level of the other, given the existing state of technology. By doing so, it defines productive efficiency in the context of that production set: a point on the frontier indicates efficient use of the available inputs, while a point beneath the curve indicates inefficiency. A period of time is specified as well as the production technologies and amounts of inputs available. The commodities compared can either be goods or services.PPFs are normally drawn as bulging upwards ("convex") from the origin but can also be represented as bulging downward or linear (straight), depending on a number of factors. A PPF can be used to illustrate a number of economic concepts, such as scarcity of resources (i.e., the fundamental economic problem all societies face), opportunity cost (or marginal rate of transformation), productive efficiency, allocative efficiency, and economies of scale. In addition, an outward shift of the PPF results from growth of the availability of inputs such as physical capital or labour, or technological progress in our knowledge of how to transform inputs into outputs. Such a shift allows economic growth of an economy already operating at its full productivity (on the PPF), which means that more of both outputs can be produced during the specified period of time without sacrificing the output of either good. Conversely, the PPF will shift inward if the labor force shrinks, the supply of raw materials is depleted, or a natural disaster decreases the stock of physical capital. However, most economic contractions reflect not that less can be produced, but that the economy has started operating below the frontier—typically both labor and physical capital are underemployed. The combination represented by the point on the PPF where an economy operates shows the priorities or choices of the economy, such as the choice of producing more capital goods and fewer consumer goods or vice versa.".
- Production–possibility_frontier thumbnail Production_Possibilities_Frontier_Curve.svg?width=300.
- Production–possibility_frontier wikiPageID "399617".
- Production–possibility_frontier wikiPageRevisionID "602491376".
- Production–possibility_frontier subject Category:Economics_curves.
- Production–possibility_frontier subject Category:Economics_terminology.
- Production–possibility_frontier subject Category:Microeconomics.
- Production–possibility_frontier subject Category:Production_and_manufacturing.
- Production–possibility_frontier subject Category:Production_economics.
- Production–possibility_frontier comment "In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph that shows the various combinations of amounts that two commodities could produce using the same fixed total amount of each of the factors of production.".
- Production–possibility_frontier label "Courbe des possibilités de production".
- Production–possibility_frontier label "Fronteira de possibilidades de produção".
- Production–possibility_frontier label "Frontera de posibilidades de producción".
- Production–possibility_frontier label "Frontiera delle possibilità produttive".
- Production–possibility_frontier label "Krzywa możliwości produkcyjnych".
- Production–possibility_frontier label "Productiemogelijkhedengrens".
- Production–possibility_frontier label "Production–possibility frontier".
- Production–possibility_frontier label "Transformationskurve".
- Production–possibility_frontier label "Кривая производственных возможностей".
- Production–possibility_frontier label "حد إمكانية الإنتاج".
- Production–possibility_frontier label "生产可能性曲线".
- Production–possibility_frontier label "生産可能性フロンティア".
- Production–possibility_frontier sameAs Production%E2%80%93possibility_frontier.
- Production–possibility_frontier sameAs Hranice_produkčních_možností.
- Production–possibility_frontier sameAs Transformationskurve.
- Production–possibility_frontier sameAs Frontera_de_posibilidades_de_producción.
- Production–possibility_frontier sameAs Ekoizpen_ahalbideen_muga.
- Production–possibility_frontier sameAs Courbe_des_possibilités_de_production.
- Production–possibility_frontier sameAs Kurva_kemungkinan_produksi.
- Production–possibility_frontier sameAs Frontiera_delle_possibilità_produttive.
- Production–possibility_frontier sameAs 生産可能性フロンティア.
- Production–possibility_frontier sameAs Productiemogelijkhedengrens.
- Production–possibility_frontier sameAs Krzywa_możliwości_produkcyjnych.
- Production–possibility_frontier sameAs Fronteira_de_possibilidades_de_produção.
- Production–possibility_frontier sameAs Q376791.
- Production–possibility_frontier sameAs Q376791.
- Production–possibility_frontier wasDerivedFrom Production–possibility_frontier?oldid=602491376.
- Production–possibility_frontier depiction Production_Possibilities_Frontier_Curve.svg.