1. The Production Possibility Curve (Production Possibility Frontier)

2. PPC
The PPC is a visual representation of the various output combinations that an economy can produce between 2 AND ONLY 2 goods/services.
This is a visual representation of a TRADE-OFF and OPPORTUNITY COST.
In theory, this model can be used with ANY 2 goods/services.

3. Basic Example:

4. Quantifying Trade-Offs/Opportunity Costs

5. Maximum Output

6. Shifts in the PPC - Examples
The PPC will shift inward on both the X and Y axes.

7. Shifts in the PPC - Examples

8. Shifts in the PPC - Examples

9. Shifts in the PPC - Examples