Know about Production Possibility Frontier and its relevance in economics at e akhabaar.
Production Possibility Frontier shows the maximum amounts of production that can be obtained by an economy given its technological knowledge and quantity of imputes available.Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.Table of Production Possibility Frontier: A table for the possibilities where two product can be produced with the utilization of resources available.PossibilitiesButterGunsA014B112C29D35E40The graphical presentation of the above table is given below: From the above graph, we see that A, B, C and D are four separate point where a producer can produce a product with the utilization of available resources.
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