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production posability curve in economics a production possibility curve is also called a production possibility Frontier production possibility boundary or product transformation curve is a graph that compares the production rates of two Commodities that use the same fixed total of the factors of production graphically bounding the production set the ppf curve shows the maximum specified production level of one commodity that results given the production level of the other by doing so it defines productive efficiency in the context of that production set let us consider the shape and use of the production possibility curve in our discussion we make the following assumptions number one only two goods X and Y are being produced number two only one factor of production is used in the production that factor of production is labor the supply of labor in the economy is fixed and total amount of Labor is fully employed number three the two goods can be produced in various ratios this means th