What Does The Statement An Economy Is Operating Below The Production Possibilities Curve (ppc) Mean?
PPC May 30th, 2009are there examples from a private manufacturer and a government agency? Also assess the probable motives of private manufacturers and government agencies for improving the efficiency of their operations.
May 30th, 2009 at 10:22 pm
Producing under the PPC means that a company is not producing enough goods/services and therefore is not using its resources effectively. Producing within the PPC is the best since it mean maximizing output and the best price. I do not know of any real-world examples. I guess any firm or industry that is withholding resources that could otherwise be used or sold would be an example.