Why are production possibilities curves helpful for businesses?

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02-06-2021
Advanced Placement (AP)

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Why are production possibilities curves helpful for businesses?

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Ericajjohnson79idn Ericajjohnson79idn · Answer 1 · 2021-06-02T14:43:54-04:00

Ericajjohnson79idn Ericajjohnson79idn

02-06-2021

Answer:

This curve shows all of the maximum output possibilities, given the factors of production and available technology - both of which are limited. By using the production possibilities curve, companies, non-profits, and governments can look at a range of how to produce goods and services efficiently.

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