Production Possibility Frontier

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Production Possibility Frontier

A graphical representation of the possible outputs using two or more inputs assuming that all inputs are used efficiently. For example, if one wishes to determine the most efficient use of raw material and labor to make as much of a product as it efficient, one may design a PPF that would show all possible production outputs, which is shown as a curve. One would then find the most efficient point on a curve and use resources accordingly.

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References in periodicals archive ?

PRECAUTIONARY ASSETS AND THE PRODUCTION POSSIBILITIES FRONTIER

Systemic appraisal optimism and Austrian business cycle theory

The input orientation gives the proportional reduction in all inputs that would bring a farm to the frontier isoquant while the output model reflects the proportional increase in outputs attainable by moving to the production possibilities frontier holding input quantities constant.

Nexus between poverty and productive efficiency among the farming households

(Administration, it is perhaps worth noting, is an intermediate input for these two outputs, rather than an output itself.) The concept of a production possibilities frontier, as most economists must agree, is well-suited to analyse this issue.

Editor's introduction

Therefore, both types of treatment can be proportionately increased if the hospitals' production plans lie within the production possibilities frontier.

Capacity in Thai public hospitals and the production of care for poor and nonpoor patients

In addition, the model described below includes a convex production possibilities frontier.

Investment-specific technology growth: concepts and recent estimates

In a similar fashion, if they can't combine two individual (linear) production possibilities frontiers to get a joint production possibilities frontier, it is extremely unlikely that they will develop any real understanding of such important concepts as opportunity cost (as represented by the slope of a production possibilities frontier), comparative advantage, and absolute advantage.

QUALITATIVE AND QUANTITATIVE METHODS: A NEW DESIGN FOR INTRODUCTORY ECONOMICS

To illustrate the first point, consider technological progress that shifts the production possibilities frontier from [T.sub.0] to [T.sub.1] in figure 2.

Economic modeling and the false tradeoff between environmental protection and economic growth

This same Pareto problem also describes the production issue giving rise to a production possibilities frontier if production functions are substituted for the value functions and x is a scarce input.

On the meaning of economic efficiency in policy analysis

However, Marshallian demand is misleading in general equilibrium, since prices and endowments are not fixed but are given by the production possibilities frontier. (4) We do not need an explicit expression for the tax revenue to complete the arguments.

Profit and expenditure functions in public finance: a correction

The static framework is based on the standard tools of analysis such as a production possibilities frontier (PPF) and the corresponding Edgeworth box's 'efficiency locus'.

Jere R. Behrman. Human Resource Development? Review of Issues and Evidence

250 crore), would go a long way to expand production possibilities frontiers of MSMEs and create new employment opportunities in the economy," said Anil Khaitan.

Reclassification of MSMEs to boost Ease of Doing Business, increase GDP share: PHD Chamber

They correctly identify nonconvexities, in the form of diseconomies of scope, as the fundamental factor responsible for the postulated shifts in the production possibilities frontiers (PPFs).