Economic term, it defines the greatest possible amount of production an economy can churn out at at maximum efficiency. In textbooks it is usually depicted using an economy with only 2 products, however, in reality, the visualization has many dimensions, since no economy produces only 2 goods.

The PPF can be expanded by capital investment, advances in technology, or an increase in the workforce. Inefficiency does not reduce the PPF, it merely places it at a point below the frontier.

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