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Definition of Production possibilities curve

Production possibilities curve Definition from Social Science Dictionaries & Glossaries
Environmental Economics Glossary
All combinations of the maximum amounts of goods that a society can produce with the available resources and technology.
Production possibilities curve Definition from Encyclopedia Dictionaries & Glossaries
Wikipedia English - The Free Encyclopedia
In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph that shows the various combinations of amounts that two commodities could produce using the same fixed total amount of each of the factors of production. Graphically bounding the production set for fixed input quantities, the PPF curve shows the maximum possible production level of one commodity for any given production level of the other, given the existing state of technology. By doing so, it defines productive efficiency in the context of that production set: a point on the frontier indicates efficient use of the available inputs, while a point beneath the curve indicates inefficiency. A period of time is specified as well as the production technologies and amounts of inputs available. The commodities compared can either be goods or services.

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