ECONOMICS

Riverton PPF — Agriculture and Machinery

This production possibilities frontier uses Riverton's choices between farm equipment and grain output to explain scarcity. The bowed frontier shows the maximum output combinations available with current resources and technology. Point A is on the frontier, so it represents productive efficiency. Point B lies inside it and represents unused resources or inefficient production. Point C is beyond it and cannot be reached with the current capacity. Moving along the frontier means producing more of one output and less of the other. An outward shift would represent more resources or improved technology, such as irrigation, training or new machinery and trained workers.

UPDATED 2026-09-25
TYPEEcon
EXAMPLERiverton PPF — Agriculture and Machinery
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CASE ANALYSIS

Scenario

Riverton is comparing how scarce labor and machinery can be allocated between two outputs.

Key decisions

  • Output choices: use equipment and grain.
  • Efficient point: place it on the frontier.
  • Unattainable point: place it beyond current capacity.

When to reuse this

Use a PPF to explain scarcity, opportunity cost and productive efficiency.

FAQ

Frequently asked questions

What does a point on the PPF show?01
It shows an efficient combination of the two outputs with the resources assumed by the model.
What does a point inside the PPF show?02
It shows unused resources, unemployment or inefficient use of available capacity.
Why is the frontier curved?03
The curve represents increasing opportunity cost as resources are shifted toward one specialized use.
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