Production_Possibility_Frontier

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Department
Economics for Management Studies
Course
MGEA01H3
Professor
Kieran Furlong
Semester
Fall

Description
MicroeconomicsWeek 1 Production Possibility Frontier PPF1Production Possibility Frontier PPF Under the field of macroeconomics the production possibility frontier PPF represents the point at which an economy is most efficiently producing its goods and services and therefore allocating its resources in the best way possible If the economy is not producing the quantities indicated by the PPF resources are being managed inefficiently and the production of society will dwindle The production possibility frontier shows there are limits to production so an economy to achieve efficiency must decide what combination of goods and services can be producedLets turn to the chart below Imagine an economy that can produce only wine and cotton According to the PPF points A B and Call appearing on the curverepresent the most efficient use of resources by the economy Point X represents an inefficient use of resources while point Y represents the goals that the economy cannot att
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