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Production Possibilities Curve Project

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George Stroesenreuther

on 4 September 2013

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Transcript of Production Possibilities Curve Project

Production Possibilities Curve Project
By: Anthony and George

Two Products
Tank Tops
PPC Chart
Production Table

Back in 2006, I met a man named George and we decided that we could make some good money making tank tops in the summer and sweaters in the winter. This created a
constant opportunity cost
, because the products were constantly produced due to weather and amount of cotton. Everything started off strong and we were doing good, but then one weekend there was a shortage of cotton in China due to a fire in our supplier's factory. This was a form of
. However, we worked very diligently that week, and found a new temporary supplier. Therefore, our production was back on track within a couple weeks, and our
frontier line
went back to consistent. Later on we saw some
when we met the owners of Volcom and we merged together. We made tank tops in the summer because that is when people will buy these because it is warm. We also figured people will buy sweaters in the winter because it is cold. If it is cold we have to give up some production on tank tops and put more resources into making sweaters, and when it is warm we will take our resources away from making sweaters and concentrate more on tank tops. During mixed weather seasons we will take our resources and distribute evenly.
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