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Now, try to plot the production possibilities for this schedule by putting the
RICE production in the vertical axis and the production of CORN in the
horizontal axis.
Q3: At what production point does Mang Mario maximize the use of his land
for rice production? What is his yield at this point?
Production Point: ________
Yield of Rice: ________
Yield of Corn: ________
Each point on the PPC represents some maximum output of the two products.
The curve is a production frontier because it shows the limit of attainable
output.
It represents all possible production combination of goods that may be Law of Absolute Advantage
produced with limited resources. When one country is able to produce a good while the other countries
cannot, it obviously puts the producing country at an absolute
Although presented in the same graph as the PPC, PPF should not be thought advantage in terms of producing that good. Said law is fathered by
of or concluded as being the same with PPC. Adam Smith.