economic definition of ppf
Economics Explained: Production-Possibility Frontier. Whenever a company, factory, or even country decides to produce something, there is only so much they can make. A finite amount of capital (factories, production equipment, etc) and laborers exist, and they limit the possible amount of production. The production-possibility frontier, or PPF, is a graphical way of showing trade-offs in production choices between 2 items. If the United States decided tomorrow to produce as many loaves of bread as possible, there would be a limit to how many loaves were made.