Trade implies that individual production possibilities frontier increase. The opportunity cost of producing furniture designs for Metal is lower than Evan. This means that Netzi should specialize in furniture designs and Ivan should produce other good to trade with Netzi. When the production possibilities frontier shifts outwards, we can assume economic growth. Complete specialization is always the best solution to achieve higher production levels and enables everyone to satisfy their desires. Technological advantage causes a firm to reduce its production. This generates an inward shift of the production possibilities frontier. Inefcient productions are located on the production possibilities frontier. If Luka produces more airplanes than Ela and Ela produces more cars than Luka; Ela should specialize in the production of cars and Luka on airplanes. l a firm receives a credit, the production possibilities frontier shifts inward. A catastrophe reduces the production of a company. This causes an inward shift of the production possibilities frontier and makes that not feasible productions became feasible