Production Possibilities Curve Explained The production possibilities curve (sometimes called the production possibilities frontier) illustrates the trade offs and opportunity costs of production choices. the production possibilities curve is important to both microeconomics and macroeconomics, so make sure you review it before your next advanced placement (ap), international. In this video i explain how the production possibilities curve (ppc) shows scarcity, trade offs, opportunity cost, and efficiency. this is the first graph y.
Production Possibilities Curve Ppc Review Think Econ Youtube The production possibilities curve is a crucial part of any ap® economics review for a couple of reasons. first and foremost, you’ll definitively need to master this concept if you want to ace your ap® microeconomic s or ap® macroeconomics exams, of course! beyond that, the ppc curve gives you an opportunity to make sure you’ve got a. An economy’s factors of production are scarce; they cannot produce an unlimited quantity of goods and services. a production possibilities curve is a graphical representation of the alternative combinations of goods and services an economy can produce. it illustrates the production possibilities model. in drawing the production possibilities. Shape of the production possibilities curve . the production possibility curve bows outward. the highest point on the curve is when you only produce one good, on the y axis, and zero of the other, on the x axis. on the chart, that is point a, where the economy produces 140,000 apples and zero oranges. In this video we explain what the production possibilities curve frontier (ppc or ppf) is, as well as demonstrate how it relates to other key concepts such a.
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