The production possibilities curve shows that:
a. an economy that is operating efficiently can have more of one good without giving up some of another good.
b. no output combination is impossible.
c. some of one good must be given up to get more of another good in an economy that is operating efficiently.
d. scarcity can be eliminated.

The production possibilities curve (PPC) illustrates the trade-offs an economy faces when allocating resources between two goods. As you move along the curve, choosing to produce more of one good means you’ll have to reduce the output of another, showcasing the concept of opportunity cost. This helps visualize that resources are limited, and efficiency is about maximizing output with those limited resources.

In real-world scenarios, businesses often use concepts from the PPC to analyze their production strategies. For instance, a factory may need to decide whether to produce more car parts or ship more bicycles. Understanding the trade-offs helps companies optimize their resource allocation, ultimately supporting better decision-making and enhancing profitability while balancing their output capabilities.