Production Possibility Frontier
The concept describes the importance of understanding the production possibility frontier (PPF) - an essential concept in economics. It provides an overview of the concept, as well as case study evidence and step by step guidance on how to illustrate the PPF in graphical form.
Technique Overview
Production Possibility Frontier Definition
The Production Possibility Frontier (PPF) is a graph that shows the various combinations of output that an economy can possibly produce given the amount of resources it has available and the current production technology firms use to transform those inputs into outputs (Mankiw, 2009). It is the graphical representation of scarcity since it shows an economy has restricted production possibilities (Srinivas & Sutz, 2008).
Production Possibility Frontier Description *
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Business Evidence
Strengths, weaknesses and examples of Production Possibility Frontier *
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Business Application
Implementation, success factors and measures of Production Possibility Frontier *
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Professional Tools
Production Possibility Frontier videos and downloads *
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Further Reading
Production Possibility Frontier web and print resources *
Production Possibility Frontier references (4 of up to 20) *
- Afonso, A., St. Aubyn, M. (2010) Public and Private Inputs in Aggregate Production and Growth, European Central Bank, Working Paper Series, Feb, No. 1154, 1-38.
- Almeida, I (2011) Brazil Crop Delays to Support Sugar Price, Morgan Stanley Says, Bloomberg, available at: http://www.bloomberg.com/news/2011-04-11/brazil-crop-delays-to-support-sugar-price-morgan-stanley-says.html
- Bloom, D., Canning, D., Chan, K. (2006) Higher Education and Economic Development in Africa, Harvard University, available at: http://www.arp.harvard.edu/AfricaHigherEducation/Reports/BloomAndCanning.pdf
- Huffington, A. (2010) Guns vs. Butter 2010, The Huffington Post, April 22, available at: http://www.huffingtonpost.com/arianna-huffington/guns-vs-butter-2010_b_548620.html
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