What is the production possibility curve?
Macroeconomics
Production Possibility Curve
Dec 24, 2022
Dec 24, 2022
Dec 24, 2022
Dec 24, 2022
Sam
Every society faces the same problem created by scarcity — the what, who, and how of production.
The production possibility curve (or frontier) shows the possible combo of two goods that can be produced by a society given available resources and technology.
However, what is produced depends on whether there is a market. If there is, getting the goods to consumers in a way that saves cost, reduces waste, and benefits producers, consumers, and society at large becomes paramount.
Something to remember
Every society aims for what brings the highest return with their current resources.
What. Should we produce more rice than beans? Okay, but will the people buy more rice? Yes, because…
Who. Nigerians love jollof rice, so it makes sense to produce more rice. They will buy it, especially during this festive season. But…
How efficient. Can we continue to produce more rice as more people find out how sweet Nigerian jollof rice is, and reduce cost and make more profit? Yes…
How to distribute. Now that we have the market, how can we find the best way to distribute more rice, reduce waste, and let more people know where and how to buy rice?
Every society faces the same problem created by scarcity — the what, who, and how of production.
The production possibility curve (or frontier) shows the possible combo of two goods that can be produced by a society given available resources and technology.
However, what is produced depends on whether there is a market. If there is, getting the goods to consumers in a way that saves cost, reduces waste, and benefits producers, consumers, and society at large becomes paramount.
Something to remember
Every society aims for what brings the highest return with their current resources.
What. Should we produce more rice than beans? Okay, but will the people buy more rice? Yes, because…
Who. Nigerians love jollof rice, so it makes sense to produce more rice. They will buy it, especially during this festive season. But…
How efficient. Can we continue to produce more rice as more people find out how sweet Nigerian jollof rice is, and reduce cost and make more profit? Yes…
How to distribute. Now that we have the market, how can we find the best way to distribute more rice, reduce waste, and let more people know where and how to buy rice?
Every society faces the same problem created by scarcity — the what, who, and how of production.
The production possibility curve (or frontier) shows the possible combo of two goods that can be produced by a society given available resources and technology.
However, what is produced depends on whether there is a market. If there is, getting the goods to consumers in a way that saves cost, reduces waste, and benefits producers, consumers, and society at large becomes paramount.
Something to remember
Every society aims for what brings the highest return with their current resources.
What. Should we produce more rice than beans? Okay, but will the people buy more rice? Yes, because…
Who. Nigerians love jollof rice, so it makes sense to produce more rice. They will buy it, especially during this festive season. But…
How efficient. Can we continue to produce more rice as more people find out how sweet Nigerian jollof rice is, and reduce cost and make more profit? Yes…
How to distribute. Now that we have the market, how can we find the best way to distribute more rice, reduce waste, and let more people know where and how to buy rice?
Every society faces the same problem created by scarcity — the what, who, and how of production.
The production possibility curve (or frontier) shows the possible combo of two goods that can be produced by a society given available resources and technology.
However, what is produced depends on whether there is a market. If there is, getting the goods to consumers in a way that saves cost, reduces waste, and benefits producers, consumers, and society at large becomes paramount.
Something to remember
Every society aims for what brings the highest return with their current resources.
What. Should we produce more rice than beans? Okay, but will the people buy more rice? Yes, because…
Who. Nigerians love jollof rice, so it makes sense to produce more rice. They will buy it, especially during this festive season. But…
How efficient. Can we continue to produce more rice as more people find out how sweet Nigerian jollof rice is, and reduce cost and make more profit? Yes…
How to distribute. Now that we have the market, how can we find the best way to distribute more rice, reduce waste, and let more people know where and how to buy rice?
Microeconomics is concerned with the everyday decision you make as an individual, whether to buy a basket of tomato instead of a bag or buy tomato at all or, as a business, whether or not to stock up on goods in anticipation of a seasonal rise in demand.