Production Possibility Frontier PPC The PPC is a visual representation of the various output combinations that an economy can produce between 2 AND ONLY 2 goodsservices This is a visual representation of a TRADEOFF and OPPORTUNITY COST ID: 370114
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Slide1
The Production Possibility Curve (Production Possibility Frontier)Slide2
PPC
The PPC is a visual representation of the various output combinations that an economy can produce
between
2 AND ONLY 2
goods/services
.
This is a visual representation of a TRADE-OFF and OPPORTUNITY COST.
In theory, this model can be used with ANY 2 goods/services.Slide3
Basic Example:Slide4
Quantifying Trade-Offs/Opportunity CostsSlide5
Maximum OutputSlide6
Shifts in the PPC - Examples
The PPC will shift inward on both the X and Y axes.Slide7
Shifts in the PPC - ExamplesSlide8
Shifts in the PPC - ExamplesSlide9
Shifts in the PPC - Examples