Production Possibilities Frontier
Explanation
The production possibilities curve demonstrates the allocation of resources in the production of two goods.
In this space, an explanation of the desired shift will appear.
The PPF will shift outwards because the increase in quantity and/or quality of resources for both goods allows the firm to produce more of each good.
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.
The PPF will shift inwards because the decrease in quantity and/or quality of resources for both goods forces the firm to produce less of each good.
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.
The PPF will pivot outwards on the y-axis because now the firm is able to produce more of Good A with no change in production constraints for Good B
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.
The PPF will pivot inwards on the y-axis because now the firm is forced to produce less of Good A with no change in production constraints for Good B
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.
The PPF will pivot outwards on the x-axis because now the firm is able to produce more of Good B with no change in production constraints for Good A
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.
The PPF will pivot inwards on the x-axis because now the firm is forced to produce less of Good B with no change in production constraints for Good A
Any points on the inside of the PPF are not efficient allocations of resources, while any points on the PPF are efficient allocations of resources, and any points outside the graph are currently impossible to attain.