en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Financial Glossary
      
Production Possibility Frontier - PPF
       
 
Back

Production Possibility Frontier - PPF

 Search definitions     
  Search  

Production Possibility Frontier - PPF
A curve showing all maximum output possibilities of two or more goods given a set of inputs (resources, labor, etc.).
    
The PPF assumes that all inputs are used efficiently. Among others, factors such as labor, capital and technology Will affect where the production possibility frontier lies. The PPF is also known as the production possibility or transformation curve.
    
PPF or "transformation curve" is a graph that shows the different quantities of two goods that an economy (or Agent) could efficiently produce with limited productive resources. Points along the curve describe the trade-off between the two goods, that is, the opportunity cost. Opportunity cost here measures how much an additional unit of one good costs in units forgone of the other good. The curve illustrates that increasing production of one good reduces maximum production of the other good as resources are transferred away from the other good.
Posted by  Financial Research Associates, LLC
 
  Back  
  Print  
  Email  

 

private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©