The production possibilities frontier can be used to show a manufacturer's possible combinations of output of two goods.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is a graphical representation of the different combinations of two products that a producer can manufacture using a fixed amount of resources. It shows the maximum quantity of one product that can be produced for every possible quantity of the other product produced. Therefore, it is an accurate statement that the PPF can be used to show a manufacturer's possible combinations of output of two goods.

The Production Possibilities Frontier Can Be Used to Show a Manufacturer's