A production possibilities frontier shows

Question

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A production possibilities frontier (PPF) shows the various combinations of output a nation can produce at a certain time, given its available resources and technology. It illustrates the concept of opportunity cost, as producing more of one good means producing less of another good. The PPF also shows the limits to future growth of a nation, as it is a representation of the maximum possible output with the given resources and technology. It does not relate to the prices of goods or production efficiency.

A Production Possibilities Frontier Shows