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The purpose of this production possibilities graph is to show A. How supply and demand determine price. B. Whether the supply of goods is elastic or not. C. The number of workers required for a specific task. D. How limited resources can be used to produce a combination of items.

Respuesta :

Answer:

The purpose of this production possibilities graph is to show how limited resources can be used to produce a combination of items.

Explanation:

The purpose of the production possibility curve (PPC) of graph is to present that the resources can be used to produce a combination of goods or items. In other words, this curve shows those combinations of two goods that can be produced by the given resources and techniques.

Assumption for PPC

  • Full and efficient use of resources is done.
  • Only two items can be produced using the given resources.
  • Resources are not equal in the production of all goods.
  • The level of technique is assumed to be constant.

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