Production possibility curve

Economics SSS 2 First Term

WEEK 5

Production possibility curve

Performance Objectives

Student should be able to:

1. Definition of production possibility curve.

2. Distinguish between Total, Average and Marginal productivity.

3. State the law of variable proportions.

Content         

The production possibility curve, also known as the production possibility boundary, production possibility frontier, production indifference curve or production transformation curve refers to a graphical illustration of all the possible combinations of two or more types of commodities which a society can produce, using a given quantity of resources. The production possibility curve represents graphically alternative production possibilities open to an economy.

The idea behind the production possibility curve is that to produce a particular commodity, the production of another commodity…