00:02
The production possibility frontier or the ppf is a curve that illustrates the possible quantities that can be produced of two goods if both of those goods depend on the same finite resources for their manufacture.
00:35
So given the information we are given, we're going to put wheat on the y -axis, and we're going to go ahead and put robots on the x -axis.
00:46
And we have 89 here.
00:50
These are the quantities for wheat, 109, 117, and then 130.
00:58
And for robots, we have 250, 450, 450, 650, and 850.
01:11
And if they produce 130 units of wheat, they can't produce any robots.
01:18
Whereas if they produce 850 robots, they can't produce 850 robots, they can't produce.
01:22
Produce any wheat.
01:23
So we get this graph here.
01:27
And we're going to make some additional points on it.
01:29
I'm going to change these colors.
01:31
And at 117, we've got the 250 robots.
01:35
At 109, you get 450 robots.
01:39
And at 89 units of wheat, they could make 650 robots.
01:44
And we're going to call these a, b, c, d, and e.
01:49
These are the different quantities that can be made given the resources.
01:54
Now, anything on the line on the production possibilities frontier line is considered utilizing all of your resources...