What is the difference between PPF and PPC?

Production Possibility Frontier (PPF) and Production Possibility Curve (PPC) are terms used in economics. However, PPF and PPC are terms with the same thing, and they can also be referred to as the Production Possibility Boundary and Transformation curve. PPF is a graphical representation that shows the possible combination of two commodities that can be produced with the same amount of resources.

It is also used to show a nation’s efficiency in utilizing its resources. The production possibility curve or frontier is also used to measure the dependency of commodities; that is, the production of one commodity can only increase if the production of the other decreases. The PPF is also an important tool in decision making for business owners.

PPF stands for Production Possibility Frontier. PPC stands for Production Possibility Curve. The Production Possibility Frontier is an economic term that refers to a graphical representation of the possible combinations or rates that two different supplies will be produced, given the same amount of resources, power, and other variables for production available within a specified period.

A PPF/PPC model displays the comparison to the level of the output of one service next to another, and this is not limited to physical goods as the PPF/ PPC can also be used to represent the production efficiency of services. The preferable result is to maximize the potential output level of one of the goods in relation to the other. The advantage of the PPF/PPC idea is that it is very resourceful in the application. It can be used at the macroeconomic level.

There is no big difference between PPF or Production Possibility Frontier and PPC or Production Possibility Curve. Both terms often used to determine the effects of two commodities on each other. Production Possibility Curve or Production Possibility Frontier is a graphical representation that shows all the resources and other factors of production used in producing two different commodities and the actual amount produced. The main idea behind the use of PPF or PPC is to be able to compare the rate at which one commodity is produced and its effects on the production of the other commodity. It is meant to show the effect that the decrease in the production of one product will have on the other product, vice versa.

Although, PPF or PPC is used only to compare the production of two commodities, however, it can be used for services. However, PPF is not always effective since it can only be used for commodities and doesn't show the effects of other commodities in the market.