Production possibilities: 1) the study of how best to allocate scarce resources among competing uses. 2) shows the relationship between price and quantity produced. 3) the alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology. 4) plots the relationship between price and quantity consumed. save

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Kelsey

Business

18 February, 19:37

Production possibilities: 1) the study of how best to allocate scarce resources among competing uses. 2) shows the relationship between price and quantity produced. 3) the alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology. 4) plots the relationship between price and quantity consumed. save

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Jimena Lester · Answer 1

The alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. in short the production possibility frontier shows the maximum output possibilities for two given goods. It makes the assumption that all inputs are utilized efficiently.