The Production Possibility Frontier (PPF) is a graphical representation of the maximum output combinations of two goods or services that can be produced with a given set of resources. It is used to illustrate the trade-offs that an economy faces when allocating resources between two different production activities. The
In microeconomics, a production–possibility frontier (PPF), production-possibility curve (PPC), or production-possibility boundary (PPB) is a graphical representation showing all the possible quantities of outputs that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such as allocative efficiency, economies of scale, opportunity cost, productive efficiency, and scarcity of resources.