Harbor Bakery PPF — Loaves and Cakes

Harbor Bakery has one production team, a shared oven and a fixed workday. If the team devotes all of its time to bread, it can make 800 loaves. If it devotes all of its time to cakes, it can make 400 cakes. The frontier shows the feasible combinations between those limits. The current plan lies on the curve, so it uses the available capacity efficiently. The point below the curve illustrates an idle oven or unfilled shift, while the point above the curve would require more capacity than the bakery has. This example helps learners distinguish a production choice from the limits that constrain it.