Question #80777
Draw a production possibility frontier (PPF) with quantity of smartphones on the X-axis and quantity of cars on the Y-axis (label graph)
Expert's answer
The PPF curve shows the maximum possible production level of one commodity for any given production level of the other, given the existing state of technology. PPFs are normally drawn as bulging upwards or outwards from the origin ("concave" when viewed from the origin). An outward shift of the PPC results from growth of the availability of inputs, such as physical capital or labour, or from technological progress in knowledge of how to transform inputs into outputs.
Source:
https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier
Source:
https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier
