On a graph of a production possibilities frontier (PPF), impossible combinations of outputs are represented by

Question

Quizplus · Accepted Answer

Impossible combinations of outputs are beyond the production capacity of an economy and hence lie outside the PPF. Points inside the PPF represent inefficient use of resources, while points on the PPF indicate efficient utilization of resources. The slope of the PPF represents the opportunity cost of producing one good in terms of the other.

On a Graph of a Production Possibilities Frontier (PPF), Impossible