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1 PPC A Production Possibilities Curve (PPC) is a fundamental model in economics that illustrates the trade-offs an economy faces when allocating scarce resources between two goods or categories of goods. It is drawn under the assumptions of fixed resources, fixed technology, and full efficiency. Each point on the curve represents a combination of two outputs that can be produced when resources are used productively. Points inside the curve indicate underutilization—resources are idle or misallo
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