The production possibility curve is the graph that indicates the various production possibilities of two commodities when resources are fixed. The production of one commodity can only be increased by sacrificing the production of the other commodity. It is also called the production possibility curve or product transformation curve.
To understand the nature production possibility curve suppose, a society produces two kinds of goods rabbit and tomatoes. though resources that are fixed in quantity. they can be used alternatively from the production of one good to another
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