The Production Possibilities Frontier (curve) for peanuts and soybeans grown in the southern US:

Question

Quizplus · Accepted Answer

The Production Possibilities Frontier (PPF) represents the maximum combination of peanuts and soybeans that can be produced given the available resources and technology at a specific location, which in this case is the southern US. Therefore, it is based on the production functions (relationship between inputs and outputs) for peanuts and soybeans in that specific region. Option B is incorrect as it is too broad and does not account for regional differences in production functions. Option D is also incorrect as the PPF is not based on prices but rather on the physical capabilities of producing peanuts and soybeans.

The Production Possibilities Frontier (Curve) for Peanuts and Soybeans Grown