250 A 225 D 200 B 175 150 125 100 75 50 25 20 40 60 80 100 Oil Drills On the PPF shown in the figure above, which points represent inefficient production points? Select one: a. points C and E b. points D and A c. points B and D d. points A and E Solar Panels
The production possibility frontier (PPF) is a curve in business analysis that depicts the maximum amounts that two products can create if they both rely on the same finite resource for production.
In economics, PPF is also very important. It can be used to demonstrate that a country's economy operates at its most efficient level when it produces only what it is best qualified to create and trades for the remainder of what it requires.
The PPF is also known as the transformation curve or the production possibility curve.
Important Points to Remember
The production possibility frontier (PPF) is a curve in business analysis that depicts the varied amounts of two items produced when both rely on limited resources.
The PPF shows that the production of one commodity can only increase if the output of the other drops.
The PPF is a tool for managers to use when deciding on the best product mix for their organization.
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