production possibility curve



A graphical representation of the alternative combinations of the amounts of two goods or services that an economy can produce by transferring resources from one good or service to the other. This curve helps in determining what quantity of a nonessential good or a service an economy can afford to produce without jeopardizing the required production of an essential good or service. Also called transformation curve.

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  • Did you use a production possibility curve to identify just how much continuing to produce armored My Little Ponies is going to effect our primary briefcase product lines?

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  • You need to know how much you can handle in the PRODUCTION POSSIBILITY CURVE so that you never promise more than you can do.

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  • We had to check out the production possibility curve to see what was going on in our company and how to fix it.

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