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Flying Vehicle Corporation 3500 3000 2500 . D 2000 B Flying Cars 1500 1000 A 500 0 100 200 300 400 500 600 700 800

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Flying Vehicle Corporation 3500 3000 2500 . D 2000 B Flying Cars 1500 1000 A 500 0 100 200 300 400 500 600 700 800 9 900 1000 1100 1200 1300 1400 Flying Motorcycles Production Possibility Curve - PPC (also called a Production Possibility Frontier- PPF) for Flying Vehicle Corporation Point D in Figure PPF/PPC, which is to the outside of the curve, indicates; O The output is efficient as the economy is getting all it can from the scarce resources The output is inefficient as the economy is producing less than it can from the scarce resources. OO The output is impossible to produce O There is no way to predict an output using a PPF curve

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