Production Possibility Curve
Production possibility curve (PPC), also known as the production possibility frontier, is a graphical representation of the different combinations of two goods that a country can produce with its limited resources and technology.

Key Points:
- The PPC shows the maximum output possibilities of an economy given its resources and technology.
- It is typically concave to the origin, indicating the concept of increasing opportunity cost.
- Points on the curve represent the most efficient use of resources, while points inside the curve represent underutilization of resources.
- Points outside the curve are unattainable with the current resources and technology.

Factors affecting the PPC:
- Resources: The availability of factors of production such as land, labor, capital, and entrepreneurship.
- Technology: Advancements in technology can shift the PPC outward, allowing for greater production possibilities.
- Efficiency: Utilization of resources at their maximum potential can lead to production at points on the curve.

Opportunity Cost:
- The opportunity cost of producing one more unit of a good is the quantity of the other good that must be given up.
- As an economy moves along the PPC, the opportunity cost of producing additional units of a good increases.

Conclusion:
The production possibility curve is a fundamental concept in economics that illustrates the trade-offs faced by an economy in allocating its limited resources to produce goods and services. Understanding the PPC helps policymakers make informed decisions regarding resource allocation and economic growth.