<P> Graphically bounding the production set for fixed input quantities , the PPF curve shows the maximum possible production level of one commodity for any given production level of the other , given the existing state of technology . By doing so , it defines productive efficiency in the context of that production set : a point on the frontier indicates efficient use of the available inputs ( such as points B , D and C in the graph ) , a point beneath the curve ( such as A ) indicates inefficiency , and a point beyond the curve ( such as X ) indicates impossibility . </P>
<P> Graphically bounding the production set for fixed input quantities , the PPF curve shows the maximum possible production level of one commodity for any given production level of the other , given the existing state of technology . By doing so , it defines productive efficiency in the context of that production set : a point on the frontier indicates efficient use of the available inputs ( such as points B , D and C in the graph ) , a point beneath the curve ( such as A ) indicates inefficiency , and a point beyond the curve ( such as X ) indicates impossibility . </P>
what do points on inside and outside the production possibilities curve represent
what do points on inside and outside the production possibilities curve represent
point on the frontier indicates efficient use of the available inputs ( such as points B , D and C in the graph ) , a point beneath the curve ( such as A ) indicates inefficiency , and a point beyond the curve ( such as X ) indicates impossibility
point on the frontier indicates efficient use of the available inputs ( such as points B , D and C in the graph ) , a point beneath the curve ( such as A ) indicates inefficiency , and a point beyond the curve ( such as X ) indicates impossibility