Respuesta :
If an economy is operating on its production possibilities frontier, it must produce less of one good if it produces more of another.
What is production possibilities frontier?
The production possibility frontier (PPF) is a curve on a graph that depicts the potential output of two goods whose production is dependent on the same limited resource. Another name for the PPF is the production possibility curve.
Opportunity cost in the production of commodities is what is lost when resources are diverted from one product to another. A curve on a graph depicts the quantity that can be generated to its maximum.
The production possibility frontier (PPF), which depicts situations that are impractical given the available resources, is above the curve.
The PPF illustrates that a rise in one commodity's production can only occur when the output of the other commodity falls.
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