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The world of economies is based on several factors like resources, opportunity cost, allocable resources, scarcity, and concepts that affect the economy on macro and micro levels.
Entrepreneurship combined with land, labor, and capital can together earn profit where PPF refers to the graphical representation(for comparison) of possible combinations of rates of two commodities produced with the same amount of resources, within the given duration and with the right amount of manpower.
It is also represented by the production possibility curve where the comparison tries to find how the level of production at one level, and the decrease or increase of one commodity production, has an impact on the other.
The method is used to maximize the potential output of one of the commodities concerning the other.
The representation of the curve can be a straight line and depending on the elements it can be made into an equation.
It helps to define the choice the society faces for a given combination of goods and services for different types of investment options.
Several concepts related to commodity substitution bias, production efficiency, allocation, and other resources are represented by the curve.
The term PPF assumes certain constants like the need of people is unlimited, the resources involved are limited, but there can be alternatives available where two different commodities can be compared, even so, in reality, the impact of using one and related factors, is a constant.
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