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what is PPC graph |
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Answer» Ppc is also known as production possibility frontier. This is graphical representation between two goods . It means we shows the difference between the two goods in graph as curve. Ex-wheat and rice we have only 500/- for buying seeds. So we have to decided we take wheat the production of wheat is high we earn more profit. He has to sacrificed one thing that is rice. Production Possibilities Curve (ppc) The Production Possibilities Curve (PPC) models a two-good economy by mapping production of one good on the x-axis and production of the other good on the y-axis. Points inside the\xa0PPC\xa0result from inefficiency; output combinations outside the\xa0PPC\xa0are impossible to produce. Production possibilities\xa0curve\xa0(PPC) (also called a production possibilities frontier) a graphical model that represents all of the different combinations of two goods that can be produced; the\xa0PPC\xa0captures scarcity of resources and opportunity costs. |
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