What is a production possibility frontier PPT?
PowerPoint Presentation. 1. The Production Possibility Frontier. A model used to highlight and clarify scarcity, and issues such as efficiency, tradeoffs, opportunity cost and growth, which are associated with scarcity.
What is production possibility curve explain with diagram?
The production possibility curve represents graphically alternative production possibilities open to an economy. The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.
What is production possibility curve PDF?
Production possibilities frontier (PPF) shows the maximum attainable combinations of two products that may be produced if we use our resources efficiently. Sometimes economists call this Production Possibilities Curve (PPC). PPF or PPC, we mean the very same thing by them.
What are the types of production possibility curves?
In total, there are 3 types of production possibility curves. Namely, straight line sloping down, concave and convex. When the line is sloping downwards, it shows that there will be less production of one good and more of the other which will always remain constant. This is because the curve has a negative gradient.
What are the uses of production possibility curve?
The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.
What is production possibility frontier?
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
What is the importance of production possibility curve?
The production possibility curve is important because it can help demonstrate the maximum possible output of goods given a set amount of resources. On a macroeconomic level, this can help economists understand and project a country or other unit’s productive activity.
What are the properties of production possibility curve?
The two basic property of production possibility curve are: It slopes downward from left to right- Production possibility curve slopes downward because both the variables involve in the equation are inversely related as one increase then other one decreases and vice versa because the resources are constant.
What are three properties of PPC?
What are the objectives of PPC?
The overall objectives of production planning and control are to: Optimize resources and the scheduling of resources to meet production demand. Ensure an efficient schedule. Have resources ready when needed.
What is the importance of the PPC in economics?
What is the purpose of PPC in economics?
What are the different types of production possibility curve?
In total, there are 3 types of production possibility curves. Namely, straight line sloping down, concave and convex.
What are the types of production possibility curve?
What are the elements of PPC?
Elements of Production Control
- Control of Planning.
- Control of Materials.
- Control of Tooling.
- Control of Manufacturing Capacity.
- Control of Activities.
- Control of quantity.
- Control of Material handling.
- Control of Information.
What are the features of production possibility curve?
The two main characteristics of PPC are:
- Slopes downwards to the right: PPC slopes downwards from left to right.
- Concave to the point of origin: It is because to produce each additional unit of commodity A, more and more units of commodity B will have to be sacrificed.