Respuesta :
In trade analysis, a production possibilities frontier (PPF) is a curve that illustrates the different amounts of two products that can be produced when both depend on the same finite resources.
The PPF demonstrates that the production of one product can only increase if the output produced for the other decreases.
PPF is a decision support tool for managers deciding on the optimal product mix for the company. As a reminder, the production possibilities limit (PPF) is an economic model that shows the possible combinations of two products or services that a company can produce. Remember that an economic model is a simplified version of reality that allows us to observe, understand, and make predictions about economic behavior. With the PPF model, we focus on the production choices and trade-offs of a society.
Since society has limited resources (e.g., labor, land, capital, and raw materials) at any given time, there is a limit to the quantity of goods and services it can manufacturing.
There is a difference between a budget constraint and a production possibility limit. The budget constraint model shows the purchasing choices an individual or company can make given a particular budget and purchase price. The production possibility frontier shows the possible combinations of two products or services that a company can produce. Budgets and pricing are more accurate. If you think about it, the "production capacity" of a society is much more complex and highly volatile. For this reason, the PPF is incorrect.
To learn more about PPF:
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