Production Possibilities Curve

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Production possibility frontier - In economics, the production possibility frontier (the PPF, also called the production possibilities curve (PPC) or the “transformation curve”) is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone.

Cost curve - In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to find the optimal point of production, where they make the most profits.

Vitality curve - A vitality curve is a leadership construct, assigning credited with certain proportions of the production to proportions of a producing population.

Productive efficiency - Productive efficiency is when the economy is working on its production possibilty frontier (PPF). This is when production is achieved at the lowest cost possible, and is when Average Cost is at the lowest point on the AC curve.


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