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Production Possibility Curve (PPC)

Opportunity cost can be represented by a production possibility curve (PPC) as shown in Figure 1.2 below with Unga represented by Consumer Goods and Jembes by Capital Goods.

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A PPC joins all different combinations of goods and services that can be purchased (consumed or produced) using all available resources and efficient techniques.

In your opinion, is it possible to purchase a combination at point B on the graph? Notice that this is not possible because resources are scarce.

outcomes
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