Question

What is the difference between the production possibilities curve and the consumption possibilities curve?

Answer 1

ANS : the difference between as if production frontier production possibility curve most important production or Transformation curve frontier is a curve and how ever which shows various combinations of the amounts of two goods which can be produced within the given resources and technology also a graphical representation showing all the possible options of output for two products that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. if A production illustrates several economic concepts,as well as make possible such as allocative efficiency, production economies of scale, opportunity cost marginal rate of marginal transformation, productive efficiency, and scarcity of resources.

if the consumption as well as or consumption frontier, is the make budget constraint where participants in international the make construction as a most important part trade can consume. Under autarky this constraint is identical to the production possibility frontier.