Nearby & related entries: 1  valley of death. 2  valley of ten thousand smokes. 3  valley of the kings. 4  valley of the shadow of death. 5  valley pocket gopher. 6  valley white oak. 7  valleyfield. 8  valleys. 9  valleyspeak. 10  valleytronics.
Economics Explained: Production-Possibility Frontier. Whenever a company, factory, or even country decides to produce something, there is only so much they can make. A finite amount of capital (factories, production equipment, etc) and laborers exist, and they limit the possible amount of production. The production-possibility frontier, or PPF, is a graphical way of showing trade-offs in production choices between 2 items. If the United States decided tomorrow to produce as many loaves of bread as possible, there would be a limit to how many loaves were made.
value of the next best alternative. It applies to both the supply side of the market. (production) and the demand side of the market (consumption). A graph of the production possibility frontier (PPF) demonstrates the. existence of opportunity costs (see below). The PPF is the boundary line. showing what combinations of two goods are possible to produce (or buy) given. the full employment of resources (the line with the diamonds).