Answer: The answer is D
A Production Possibilities Frontier (or Production Possibilities Curve {PPC} ) as the name implies is a graphical representation of all the possible combinations available for producing two set of goods at a given point in time while fully utilizing or deploying all the resources for production.
A simple illustration will help at this point:
Suppose Brainly Republic (an imaginary country) is into the production and export of textiles as well as computers. It would like to know which of the two commodities would yield the higher profit and needs to decide whether to produce one of them and completely ignore the other. But a better option would be to find out if it can produce both commodities and still make it's profit.
So the real question is,
(a) does it have to produce more of textiles and less of computers, or (b) does it have to produce more of computers and less of textiles?
If Brainly Republic begins to consider option A, then it needs to know how much of textiles as against computers it should produce. Is it a ratio of 90:10, 80:20, or 70:30?
The figures that show the possible combinations are plotted on the PPF (and shows all resources being fully employed)
Explanation:
