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.
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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.
Frequently asked questions
What does a point on the PPF show?
What does a point inside the PPF show?
Why is the frontier curved?
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