The production possibility frontier is actually a data set of values that produce a curve expressing opportunity cost on a graph. Opportunity cost is how economists understand the trade-offs and ...

Production possibilities frontier example The following chart shows an economy that only produces a combination of cars and airplanes from a fixed set of resources. For example, these resources ...

MRT is also considered the absolute value of the slope of the production possibilities frontier. The marginal rate of substitution focuses on demand, while MRT focuses on supply.

The purpose of this paper is twofold. The first is to obtain a nice characterization of production possibility sets generalizing the well-known nonsubstitution theorem. The second is to obtain a ...