production possibilities frontier

production possibilities frontier definition - business

production possibilities frontier

In economics, the graph depicting all possible combinations of two or more goods, assuming the efficient use of resources. The frontier is generally drawn as a concave curve and illustrates the tradeoff of one good for additional production of another good. The goal is to increase productivity and shift the curve outward.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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