Production Possibilities Frontier
The production possibilities frontier is the maximum rate of production an economy can accomplish over a specific period of time with limited quantity of factors of production.
opportunity cost is the most desirable alternative given up as the result of a decision
The Graph below displays a production possibilities curve.
Point x stands for underproduction
point A refers to the level of production of wine being greater than that of cotton
point B refers to the level of production between wine and cotton being equal
point C has greater cotton production than wine
point Y is impossible
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