Opportunity cost and the Production Possibilities Curve

The production possibilities curve (PPC) is a model used to show tradeoffs. It is used to illustrate scarcity, opportunity cost, efficiency and inefficiency, and economic growth. In this lesson, learn how to use the PPC (which is sometimes called the production possibilities frontier, or PPF) to model tradeoffs, opportunity cost, and efficiency.

Production possibilities curve

Opportunity cost

Increasing opportunity cost

PPCs for increasing, decreasing and constant opportunity cost

Production Possibilities Curve as a model of a country's economy

Opportunity cost and the PPC