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.
Open it in the AI editor with a prompt pre-filled — keep what works, change what doesn't.
Scenario
A bakery owner explains daily capacity choices to a new manager.
Key decisions
- Set realistic maxima: Use the bakery's staffing and oven capacity.
- Label the current plan: Separate the operating choice from the frontier.
- Show unused capacity: Make the efficiency discussion concrete.
When to reuse this
Use this PPF when two outputs compete for the same limited staff and equipment.
Frequently asked questions
Why are the axes loaves and cakes?
What does the current plan show?
Why is one point unattainable?
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