PRODUCTION POSSIBILITY CURVE: With the available amount of r | UPSC Economy
PRODUCTION POSSIBILITY CURVE:
With the available amount of resources and technology, the various alternative combinations of production of a set of two goods are plotted to give a production possibility curve.
It is also known as Production Possibility Frontier or Transformation curve.The curve helps in deciding "what to produce".
Thus, the curve provides all the production possibilities available, out of which the most economically or physically viable one could be chosen to maximize profit and minimize the losses attached.
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