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Production Possibility Curve

Global Economics
by

Daniel Kim

on 21 August 2013

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Transcript of Production Possibility Curve

Production Possibility Curve
Cars
Trucks
1 2 3 4 5 6
5

4

3

2

1
This is my production point. I will be selling 40 cars, and 20 Trucks.
Imagine you are a used car salesmen and you need to figure out how many cars and trucks to sell on your lot
We have to imagine the fact that we do not have an unlimited amount of space to store our cars.

To figure out how many cars vs. trucks we can sell, we can construct a
Production Possibilities Curve
!

A
Full transcript