Respuesta :

The production possibilities frontier model shows that more of one good can be produced only by producing less of another good.

Changes in the total number of production elements that are currently accessible or technological improvements may be the cause of an outward or inward shift in the PPF.

Production Possibilities Frontier Model: The production possibility frontier (PPF) is a curve on a graph that depicts the potential output of two goods whose production is dependent on the same limited resource.

Assumption To PPF:

1) The resources are available and continue to be constant,

2) The technology employed in the manufacturing process doesn't change.

3) The technology and resources are effectively and completely used.

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