Introduction to the Production Possibilities Frontier

This video gives an example of the production possibilities frontier and talks about the general properties of the model. For more on how to construct a complete PPF, see "Constructing the Production Possibilities Frontier."

For more information and a complete set of microeconomics videos, see
http://www.economistsdoitwithmodels.com/microeconomics-101

by Economists Do It With Models

Category:

Education

Tags:

• economics
• microeconomics
• production
• possibilities
• frontier
• PPF

[5516fish3721]

OK, the choice of X and Y axis labels was arbitrary so the slope calculations would be the same if the axes were reversed. I guess it matters if the economic value of washing cars was greater than mowing yards, eh?

[jodiecongirl]

You're right in that it was arbitrary. I think I put lawns on the Y axis because they came first. If the axes were switched the slopes would be the reciprocals of what they are here, and rather than representing the opp cost of car washes in terms of lawns would represent the opp cost of lawns in terms of car washes. The videos "Constructing the PPF" and "Comparative Adv and Gains From Trade" give more on this point.

[Rao665]

I wish she would remove the barriers so i can enter her market :(

[Crackajack69]

I wish you weren't so hot! ( so I can concentrate!!) And yes, the fact that you're an intelligent teacher makes you even hotter....

[AnnaLR1640]

i dont understand -25/15....why -25? where do we look at? Thank you.

[zunkfunkt]

I wish she was my economics teacher. Not only does she teach good, shes very easy on the eyes.

[liquidribs]

damn.. I need your brain!

[nidodeproteccion]

@Rao665 I'm sure her market has a high ceiling. I wouldn't count on it even with another recession.

[luistpuig]

Productivity is a result of Efficiency, and not energy efficiency like some are talking right now, but COMPLETE Efficiency...if you don't know the Baselines of your business how can you improve it?... if your Equipment isn't kept and operated properly how can you depend on it?...if your organization has no effective worker’s communication & training how can you get people to do the right things?...get it? Process, Equipment, Personnel, the core elements... get the Industrial Efficiency Triangle.

[krishaaa]

Economists do it with models? What an example you're setting.

[aaron10612]

For the longest time I couldn't figure out the purpose of algebra, you have made algrabra understandable to me. Thank you, Aaron Dabrowski.

P.S. You should teach algebra also.