What is the purpose of a production possibilities graph?

The purpose of the production possibilities chart is to provide a representation of the possible ways in which an economy can use resources.

Explanation:

The production possibilities curve is the ratio of the maximum quantities of production possibilities between products, whether two or more of them. Thus, taking into account the fact that to produce more than one good, when capacity is maximum, the quantity of the other is naturally reduced. Thus, the production possibility curve needs to consider all available resources and technologies in an economy, thus displaying the factor necessary to obtain maximum quantities in the economy.

Based on this, we can conclude that the goal of a production possibilities chart is to provide a representation of the possible ways in which an economy can use resources.

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