A production possibilities curve (PPC) illustrates the attainable combination of the satisfaction or pleasure obtained by consumers from consuming a good or service. When producing things, opportunity cost is what is lost when resources are diverted from one product to generate another. A graph depicts the greatest quantity that may be produced by a curve.
The production possibilities curve (PPC) is above the curve, indicating that with the current resources, impossible situations exist. The PPF indicates that one commodity's production can increase only if the output of the other commodity drops. The PPF is a decision-making tool for managers who are determining the best product mix for their consumers.
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