A production possibilities frontier (ppf) graph would be used when a business wants to

Answer 1

We can use a business and talk about capital but perhaps it is conceptually easier to think of a farmer who has a lot of land The ast end of the property is very good for wheat production and the west side is very good for Corn The middle of the lot is good (but not great for producing either. He will have a typical concave production possibilities frontier where he will plant some of both crops. If he wants to produce more corn he has to use land that was producing Whet. The western portion of his lot will be corn and he has to move East to produce more corn. The further east he goes the more and more wheat he gives up to produce another bushel of corn.

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