Production Possibility Frontier (PPF) explained (PPC)

Production possibility frontier PPF also called production possibility curve PPC is A graph that shows all the combinations of goods and services that can be produced if all of society’s resources are used efficiently.
All points below and to the left of the curve (production possibility frontier) represent combinations of Beer and Wine that are possible for the society given the resources available and existing technology.
Although an economy may be operating with full employment of its land, labor, and capital resources, it may still be operating inside its ppf (production possibility frontier), at a point such as A. The economy could be using those resources inefficiently.
Periods of unemployment also correspond to points inside the ppf (production possibility frontier), such as point A.
Moving onto the frontier like point B means achieving full employment of resources.

Points above and to the right of the curve, such as point C, represent combinations that cannot be reached.
If an economy were to end up at point A on the graph, it would be producing no consumer goods at all; all resources would be used for the production of capital. If an economy were to end up at point B, it would produce only consumer goods.

The ppf illustrates a number of economic concepts. One of the most important is opportunity cost. The opportunity cost of producing more Beer is fewer Wine.
0:00 PPF Production Possibility Frontier
3:00 Opportunity cost on the PPF
#productionpossibilityfrontier #ppfexplained#ppcexplained #economics

[carmenwhittaker]

Thank you Socrat - made so much more sense than our SA lecturer "tried" to explain it.

[zahrafatty]

Wow...I'm on assignment an I must confess this is indeed helpful

[navodachanchala]

Woow woow woow...how amazing this video is? I havent engaged with the economic subject . But I have to face economic in my university in this currently . I started to love economic because of your video . It clearly teaches the lesson ..Thank you..Wish u all the best...❤️

[cnkstlc]

this was a perfect video before my mid term

[vikalikudrausa]

I love this video. The explanation is very simple and easy to understand. I am currently learning about this concept and now i won't have to worry about this type of questions appearing in the finals at University.

[lsass]

yes, this was wonderful! thank you for clarifying this concept with your video.

[cyber]

bro ur actually so helpful thank u, ur accent is very soothing too

[shoto]

thank u so much for this. ur explanation i so direct and also the example were easy to understand. more power to u sir!

[AyshaHamzath]

Thank u soo much for giving a super simple and clear explanation 😊

[tigisttg-rcul]

Thank you ver much sir, Now I anderstand it by easy way❤❤❤❤

[지현박-rm]

This video is so good for understanding

[lilmanmast]

thank you for explaining, this was very helpful

[.io]

easy to understand and helpful. Thank you 🙏🏾

[MaryamAlbalooshi-qtwn]

Excellent I loved the video! I have to draw PPF for a project. Please tell me how you got this done.

[mbuguawamwere]

great lesson, what app are you using to draw that?

[ericleung]

Imports accounted for abour 70% of sales of port meat in Australia. Pork imports from Denamrk, Canada, and the
United States rose 48% in the past year. Australian producers receive about $2.30 per kilogram, which costs $3 to
produce.

Canada is an important supplier of pork meat to Australia, while Australia exports wine to Canada.

Draw both an Australian and a Canadian PPF for wine and pork which are consistent with this pattern of trade. Lable the
curves.

Vertical -Wine (thousands of bottles)
Horizontal - Pork meat (thousands of kilograms)

Plese can anyone help to solve this question ?

[o_fessor]

My question is that
why the frontier of ppf is always curved (bowed out) why not straight 😢😢😢

[dontlookplease]

great video !! i was wondering if the points inside and on the ppc are attainable or not

[melishamoses]

if the producer is producing at point B and decides to produce at point E, what would happen to the production level of both goods like in terms of gain and loss

[yonaneffati]

i cant find any video explaining how to calculate opp cost of A to B ( so inefficient point to efficient point ). Do i use the same method as point B to F or is it impossible? pls help me