3. Objectives
Students will be able to :
• Define PPC
• Read graph and extract the points under, on and beyond a
PPC
4.
5. Production
Production is the process of combining various
inputs, both material and immaterial in order to
create output. Ideally this output will be a good or
service which has value and contributes to the utility
of individuals.
6.
7. Production Possibility curve
The production possibilities curve (PPC) is a
graph that shows all of the different
combinations of output that can be produced
given current resources and technology.
Sometimes called the production possibilities
frontier (PPF), the PPC illustrates scarcity
8. Production Possibility Curve
A PPC shows all the combinations of two
goods which can be provided if all
resources are being used efficiently