Coastal Workshop PPF — Tables and Chairs

Coastal Workshop makes tables and chairs using the same carpenters, wood stock and shop equipment. A week focused entirely on tables produces fewer chairs, and a week focused on chairs leaves less time for tables. The frontier represents the maximum combinations the shop can make with its current resources. The efficient schedule on the curve is a fully utilized production plan. The idle-capacity point is feasible but inefficient because the workshop could make more of at least one product without reducing the other. This is a compact example for introducing opportunity cost before applying the concept to an economy.