Production possibility frontier (PPF) refers to the maximum number of products that can be produced by a given number of resources, which is mathematically expressed as a boundary. It can be realized within the boundary, but the production efficiency is not sufficient, and it cannot be realized outside the boundary, which is the most efficient among the achievable outputs on the boundary. ?

If there are two kinds of products, PPF is a curve on the plane, also called production possibility curve (PPC). Three products are represented as surfaces in three-dimensional space; PPF formed by more products can only be expressed mathematically in Euclidean space. It is generally assumed in economics that PPF is convex, which means that the marginal product produced is decreasing.

Extended data:

Production possibility frontier said that under the given economic resources and production technology conditions, the combination of the maximum output that can be achieved by two products. The social production department said at the production possibility frontier that the social economy is in full employment; The point where social production is located in production possibility frontier shows that society has failed to make full use of resources.

Production possibility frontier's inclination to the lower right shows that the selected price is opportunity cost, that is, if one unit of product is produced, some units of another product will be produced less under the given resources and technology. Some units give up in order to produce one more unit of a product, and another product is the opportunity cost of producing one more unit of a product.

Baidu Encyclopedia-Production Possibility Boundary Line