produksjonsmulighetskurve

Produksjonsmuligheter, often translated as "production possibilities" or "production possibility frontier" (PPF), is an economic concept that illustrates the maximum output that can be achieved by an economy with its given resources and technology. It represents the trade-offs an economy faces when deciding how to allocate its resources between the production of two different goods or services. The frontier itself is a curve that shows all possible combinations of two goods that can be produced efficiently, meaning no resources are wasted.

Points on the production possibility frontier indicate efficient production. Points inside the frontier represent inefficient use of resources, meaning more of both goods could be produced. Points outside the frontier are unattainable with the current resources and technology. As an economy moves along the PPF, producing more of one good requires producing less of the other, highlighting the concept of opportunity cost. The shape of the PPF, typically bowed outwards, reflects the law of increasing opportunity cost, meaning that as more of one good is produced, the sacrifice of the other good becomes progressively larger. Changes in the economy's resources or technology can shift the PPF outwards, signifying economic growth.