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

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

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Examples of Production Possibility Frontier *

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Business Application

Production Possibility Frontier Implementation *

Success Factors of Production Possibility Frontier *

Measures of Production Possibility Frontier *

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Professional Tools

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Further Reading

Production Possibility Frontier Web Resources *

Production Possibility Frontier 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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