Answer to Question #37320 in Microeconomics for jothi
Production Possibility Frontier - PPF is a curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). The PPF assumes that all inputs are used efficiently.
If firms practice inefficient management practices (like many Sri Lanka firms!), the PPF will shift to the left, as the inefficient management practices make the operation of the economy less efficient.
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