AP MicroeconomicsCore Economic Concepts
Production Possibilities Curve
The Production Possibilities Curve (PPC) is a graphical representation showing the maximum combination of two goods or services that can be produced in an economy with a given set of resources and technology, assuming full and efficient use of those resources.
The PPC illustrates the concept of opportunity cost and trade-offs. Points inside the curve are attainable but inefficient, points on the curve are efficient, and points outside the curve are unattainable. The slope of the PPC represents the opportunity cost of producing more of one good, in terms of the other good forgone. The PPC can shift outward with technological progress or an increase in resources.
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