Production Possibility Frontier?
Answer:
In order to find out an economy's choice of an output bundle on the PPF you will need to know the highest possible social welfare function that does not exceed the PPF.
That is the point where the indifference curve is tangent to the PPF. Or, the point on the PPF where the MRS (marginal rate of substitution, which is the slope of the indifference curve) is equal to the MRT (marginal rate of transformation, which is the slope of the PPF).
When I first read this question I thought that you thought you might be pregnant.
So I have no real or constructive input.
The production possibility frontier is a graph.
One axis is the quantity of one good, say shoes.
The other axis is the quantity of another good say bread (or sometimes all other goods).
It is generally thought the line or function connecting the two goods is smoothly bowed outward, like the other person said 'pregnant'. Why is it bowed out? Suppose we are at the center. If we make more shoes we will have to use more leather. But as we know the more of an input we use, the less it's quality. Presumably because we will have to use land that is not as rich to feed our cows, or go farther to try to get good shoemakers. This assumes diminishing returns and is the normal assumption here.
But what combination of the goods will be produced? Although the production possibilities frontier shows what is possible to produce, it doesn't show what will be produced. Generally, we think of humans have a preference for the ratio of shoes and bread, and that the exact quantity of both is determined where the ratio demanded is equal to the ratio that could be produced.
This tells us why the production function is smooth. I f were bumpy, then it would have lots of different maximum points, and the theory would be useless.
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