Production Possibility Curve (PPC): 7 Applications | Economics

The following points highlight the seven applications of Production Possibility Curve (PPC). The applications are: 1. Scarcity 2. Opportunity Cost 3. Specialisation 4. Marginal Decision Making 5. The Irrelevance of Sunk Costs 6. Economic Growth 7. International Trade. Application # 1. Scarcity: Since resources are scarce, only limited quantities of goods and services can be produced. However, resources have alternative [...]