Current Events > TIL a new economic expression - production possibility frontier.

(+) Yeah! (+)

It's apparently pretty important in economics. Do you know what this means?

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Bump.

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In business analysis, the production possibility frontier (PPF) is a curve that illustrates the possible quantities that can be produced of two products if both depend upon the same finite resource for their manufacture.

PPF also plays a crucial role in economics. It can be used to demonstrate the point that any nation's economy reaches its greatest level of efficiency when it produces only what it is best qualified to produce and trades with other nations for the rest of what it needs.

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I think PPF is also used to show why monopolies are negatively impactful because they can take advantage of demand by underproducing and pricing higher to compensate, basically there's a graphical proof for why monopolies cause bad outcomes for society

Could be thinking of something else, I took macroecon over the summer and it was a LOT and I didn't absorb all of it

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