The production possibilities frontier shows different combinations of two goods:

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The production possibilities frontier (PPF) represents the different combinations of two goods that can be produced with the given number of resources available. The PPF shows the maximum quantity of one good that can be produced given the quantity of the other good produced. It assumes that resources are fully employed but not overutilized beyond their capacity. This means that the PPF illustrates the trade-offs that producers have to make between producing one good versus the other, given their limited resources. A point inside the PPF indicates that resources are not being fully utilized, whereas a point outside the PPF is not feasible given the available resources.

The Production Possibilities Frontier Shows Different Combinations of Two Goods