ECONOMICS

River Farm PPF — Corn and Soybeans

River Farm must split its arable land, operators and harvesting equipment between corn and soybeans. The two crops do not draw on those resources in exactly the same way, so shifting land from one crop to the other creates an opportunity cost. The frontier gives the maximum output combinations under the season's available capacity. The planting plan is a productive choice on the curve. The fallow-acres point is inside the curve because it leaves some land or machine time unused. This chart creates a concrete starting point for discussing why a farm cannot maximize both crops at the same time without adding productive resources.

UPDATED 2026-09-25
TYPEEcon
EXAMPLERiver Farm PPF — Corn and Soybeans
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CASE ANALYSIS

Scenario

A farm manager allocates the same land and machinery across two crops.

Key decisions

  • Set the crop maxima: Base them on usable acreage.
  • Mark the planting plan: Show the chosen output mix.
  • Identify fallow acres: Separate underuse from a feasible plan.

When to reuse this

Use this example for resource-allocation lessons involving land, labour and machinery.

FAQ

Frequently asked questions

What causes the trade-off?01
Land, labour and equipment are limited and shared by the two crops.
Is the planting plan efficient?02
Yes, it is placed on the frontier.
What would shift this PPF outward?03
More usable land, better yields or additional harvesting capacity could do so.
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