Production possibility curve (PPC):
•PPC represents all possible combination of two products the can be produced with the give amount of input
•PPC is also known as opportunity curve because it represents all production possibilities or opportunities available with limited resources
•It is called iso-resource curve or iso-factor curve because each output combination in this has the same resource requirement
•The amount of land used to produce Maize (Y2) depends upon the amount of land used to produce wheat (Y1).
•Therefore, Y1=f (Y2).The allocation of land resource between the two products and the output from different doses of land input are presented below:
•Input=5 acres of land

As evident from above data, if all 5 acres of land are used in the production of y2 we obtain 60 quintals of y2 and do not get any y1. On other hand, If all the five acres of land are used in the production of y1 we can obtain 30 quintals of y1 and do not get any y2. But these are the two extremes production possibilities. In between these two, there will be many other production possibilities.
•Plotting these points on a graph, we get the production possibility curve.
Figure: Production possibility curve of 5 acre of land
where, y1= wheat and y2=maize.

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