PPC is the geometrical representation of the possible areas within which production can be possible, taker cognizance of the limited resources. It shows the various possible combinations of goods that can be produced with the limited available resources.
RELEVANCE OF THE P.P.C
- The P.P.C. helps in allocating resources on how it will be used.
- Unemployment problem is explain through p.p.c
- It also explains the problem of economic efficiency.
- Technological progress is achieved through p.p.c