The production possibilities frontier curve is a graph that shows the possible combinations of production that an economy can have. Thousands of goods are produced in an economy, but for simplicity it is assumed that this particular economy produces only two goods. To better understand this, let's look at the following graph; let's assume that cement and televisions are produced. On the Y axis we will measure the tons of cement and on the X axis the number of televisions. As its name suggests, this graph is a boundary, that is, the limit of total production is the curve; all possible combinations must be on or within it. For example, if the economy is located at a point like A, it is because all the factors of production, labor, machines and technology available are used only for cement production. In this case, the total production would be 3000 tons of cement but 0 televisions. The other extreme would be a point like B, here 1000 televisions and 0 tonnes of cement would be produced. In summary, all the points located on the curve are efficient, for example, point C where 1700 tons of cement and 600 televisions are produced. What happens then if the economy is located at a point like D, here 300 tons of cement and 150 televisions are produced; it is said that this is an inefficient point, it could be because of the lack of labor or because there is no machinery available. Now let's go to the other extreme: what happens if the economy is located at a point like E? Which is outside the curve. At this point, with the resources this economy has, it is impossible to produce so many tons of cement. What would happen then? Let's suppose that a larger and more advanced machine arrives in this economy to produce cement, then the curve of the frontier of production possibilities widens and, in this way, it is now possible to produce 2200 tons of cement and 200 televisions. These are basically the different alternatives that a curve can show us as the frontier of production possibilities. I hope you have enjoyed the video and don't forget to subscribe.