A production possibility frontier is a graphical representation of the maximum combination of goods and services that an economy can produce with its available resources and technology. It illustrates the tradeoffs that occur when allocating resources between different goods and services. The curve typically shows the opportunity cost of producing one good in terms of the other. Points on the curve represent efficient allocation of resources, while points inside the curve represent underutilization of resources and points outside are unattainable with current resources.
