In business analysis, the production possibility frontier

(PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases.

What is meant by the term the production possibility?

Definition: The Production Possibilities Curve, also known as the production possibilities frontier, is a graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently.

What is a production possibility table?

A Production Possibilities Table lists a choice's opportunity costs by summarizing what alternative outputs you can achieve with your inputs. ... This reflects the Opportunity Costs associated with production. Or more specifically, if the country wants 20 more tons of Rice it must give up 5 tons of Iron Ore.