Production possibility curve

A production possibility curve or PPC may be defined as the possible tradeoff of producing combination of goods with constant technology and resources allotted per unit time. In other words, it means that one good can be produced by diverting resources from other goods or by less production of the other goods. It basically represents the possible ways to open any economy by altering the production of goods, since the technology and the inputs provided are limited. This is quite noticable in economic organizations, individuals and households.

 Suppose two products A  and B are produced in the market at X   and Y quantities respectively. So according to the production possibility curve,  if there is an increase in the production of A , significantly there will be a considerable decrease in the production of B ,since there are limited inputs or technology for the production.