production possibilities  curve

• the production possibilities  curve  is a hypothetical representation of amount of the two different good or any quantity  that can be obtained by shifting resources from the production   of one to the production of the other the curve is used to describe a society choice .
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• An economy’s factors of production are scarce; they cannot produce an unlimited quantity of goods and services. A production possibilities curve is a graphical representation of the alternative combinations of goods and services an economy can produce. It illustrates the production possibilities model. In drawing the production possibilities curve, we shall assume that the economy can produce only two goods and that the quantities of factors of production and the technology available to the economy are fixed.
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• the best example of production possibilities  to and consider the chart below. Imagine an economy that can produce only two things: apple  and orange . According to the PPC  – all appearing on the PPC curve – represent the most efficient use of resources by the economy. For instance, producing 5 units of APPLE and 5 units of ORANGE (point B) is just as desirable as producing 3 units of APPLE and 7 units of ORANGE. Point X represents an inefficient use of resources, while point Y represents the goals that the economy simply cannot attain with its present levels of resources. 

 In order for this economy to produce more APPLE, it must give up some of the resources it is currently using to produce ORANGE. If the economy starts producing more ORANGE , it would need to divert resources from making wine and, consequently, it will produce less APPLE than it is producing at point . As the figure shows, by moving production from point , the economy must decrease wine production by a small amount in comparison to the increase in ORANGE output. However, if the economy moves from point , wine output will be significantly reduced while the increase in ORANGE will be quite small. Keep in mind that  all represent the most efficient allocation of resources for the economy; the nation must decide how to achieve the PPC and which combination to use. If more wine is in demand, the cost of increasing its output is proportional to the cost of decreasing cotton production.