PPT-The Production Possibility Curve

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. The . Production Possibility Curve. 1. 2. What you will . learn in . this Module:. Trade-offs are important in economic analysis. The production possibilities curve model reveals about the economy (efficiency, opportunity cost, and economic growth). Graphing the Combinations of Production for Two Goods or Services. Shows all of the possible combinations of two goods or services that can be produced within a stated time period, given two very important assumptions:. Tradeoffs in Production. The Production Possibilities Curve. Graph the following:. Televisions. Cars. 0. 16. 8. 14. 13. 10. 16. 6. 18. 2. 19. 0. Televisions. Cars. 0. 16. 19. Production Possibilities Curve. This curve demonstrates the tradeoff of production possibilities between two products. . Y Axis. X Axis. Production Possibilities Curve. Each point on the curve represents what is possible in the production of the two products. Notice that the curve is inverse: adding to one side means less of the other . and market failure. In this theme, students will consider how markets work, looking at how supply and demand interact to allocate resources in local, national and international markets. They will learn how to apply supply and demand analysis to real-world situations and be able to offer explanations of consumer behaviour. This will involve looking at both how consumers act in a rational way to maximise utility and how. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 1c – Production Possibilities. This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. Construct . a production possibilities curve (PPC) when given appropriate data; what is the production possibilities curve (PPC) or production possibilities frontier (PPF)?; what does it show?. The Economic Problem. Unlimited Wants. Scarce Resources With Choices. A wind farm.. Copyright: iStock.com. 3. Production Possibility Frontiers. PPF Shows the different combinations of goods and services that can be produced with a given amount of resources. 1. Scarcity. 2. Scarcity. Resources are scarce. You can’t always get what you want so everyone must make choices.. Choices can be dependent on money but also time.. Why do individuals have to make choices? . Would you rather…. Study or go to the movies?. Eat a salad or French fries?. Buy a new phone or a new outfit?. How do you decide?. Economics. The study of scarcity and choice.. Economists ask: How do we satisfy our needs and wants by making choices?. 11 ModalityModality is the study of possibility and necessity These concepts are intuitive enough PossibilitySome things could have been different For instance I could have been a truck driver Britain CONFERENCEOFPARTIES 26THERES NO BENEFIT IN WAITINGCOP26 in Glasgow is set to amplify climate action If the conference underdelivers the need for companies cities and countries to prepare themselves fo Behind the Supply Curve. Profit . Profit = Total Revenue – Total Cost. Primary goal of a firm is to maximize profit. Can be done in two ways. Increase revenue. Reduce costs. What types of costs exist?. Production Cost Curve (Short Run) . Total fixed cost of production (TFC). Fixed costs are amount spent by the firm on fixed inputs short-run. Fixed costs are, thus, those costs which remain constant, irrespective of the level of output. These costs...