Production Possibility Frontier (PPF) explained (PPC)

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  • Опубликовано: 21 ноя 2024

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  • @zahrafatty5286
    @zahrafatty5286 2 года назад +9

    Wow...I'm on assignment an I must confess this is indeed helpful

    • @SocratGhadban
      @SocratGhadban  2 года назад +1

      Thank you Zahra, Glad it helped you :)

  • @carmenwhittaker3749
    @carmenwhittaker3749 Год назад +2

    Thank you Socrat - made so much more sense than our SA lecturer "tried" to explain it.

    • @SocratGhadban
      @SocratGhadban  Год назад

      My pleasure! not easy to make things look easy =)

  • @navodachanchala6105
    @navodachanchala6105 2 года назад +14

    Woow woow woow...how amazing this video is? I havent engaged with the economic subject . But I have to face economic in my university in this currently . I started to love economic because of your video . It clearly teaches the lesson ..Thank you..Wish u all the best...❤️

    • @SocratGhadban
      @SocratGhadban  2 года назад +1

      You made my day! thank you for your kind words! so glad that you liked the video!

  • @user-cn9ks5tl1c
    @user-cn9ks5tl1c Месяц назад +1

    this was a perfect video before my mid term

  • @vikalikudrausa9019
    @vikalikudrausa9019 2 года назад +6

    I love this video. The explanation is very simple and easy to understand. I am currently learning about this concept and now i won't have to worry about this type of questions appearing in the finals at University.

    • @SocratGhadban
      @SocratGhadban  2 года назад +1

      Great to know that you loved the video.. I wish you all the best in your finals :)

  • @lsass1111
    @lsass1111 2 месяца назад +1

    yes, this was wonderful! thank you for clarifying this concept with your video.

  • @cyber403
    @cyber403 2 месяца назад

    bro ur actually so helpful thank u, ur accent is very soothing too

    • @SocratGhadban
      @SocratGhadban  2 месяца назад +1

      Thank you, pleasure to read your comment!

  • @papacaramel5102
    @papacaramel5102 Год назад +1

    SO CONCISE AND INFORMATIVE

  • @3.5io11
    @3.5io11 3 года назад +6

    easy to understand and helpful. Thank you 🙏🏾

  • @지현박-r8m
    @지현박-r8m Год назад +1

    This video is so good for understanding

  • @shoto6329
    @shoto6329 2 года назад +3

    thank u so much for this. ur explanation i so direct and also the example were easy to understand. more power to u sir!

    • @SocratGhadban
      @SocratGhadban  2 года назад

      Thank you for your kind words! I'm glad you found it useful!

  • @AyshaHamzath
    @AyshaHamzath Год назад +1

    Thank u soo much for giving a super simple and clear explanation 😊

  • @tigisttg-rc2ul
    @tigisttg-rc2ul Год назад +1

    Thank you ver much sir, Now I anderstand it by easy way❤❤❤❤

  • @PixieDagamer-j8q
    @PixieDagamer-j8q 4 месяца назад +1

    Best explanation ever!❤

  • @hatimamuzamil7098
    @hatimamuzamil7098 Год назад +1

    Well explained, thank you

  • @jamestoland5176
    @jamestoland5176 3 года назад +2

    Explained so well, thanks!

  • @MaryamAlbalooshi-qt8wn
    @MaryamAlbalooshi-qt8wn 2 года назад +1

    Excellent I loved the video! I have to draw PPF for a project. Please tell me how you got this done.

    • @SocratGhadban
      @SocratGhadban  2 года назад

      Thank you for your feedback.. You can do it on excel and put the different points combination and you insert. Check this instead of weeks put the other variable www.howtogeek.com/462170/how-to-make-a-curved-graph-in-excel/

  • @chocolate_liberty2835
    @chocolate_liberty2835 4 года назад +2

    EASY AND VERY HELPFUL THANK YOU

    • @SocratGhadban
      @SocratGhadban  4 года назад

      Thank you! Glad it was helpful. cheers!

  • @saifuddinsimanta9638
    @saifuddinsimanta9638 2 месяца назад +1

    very helpful 😘

  • @lilmanmast9822
    @lilmanmast9822 2 года назад +1

    thank you for explaining, this was very helpful

  • @sarangborse2873
    @sarangborse2873 2 года назад +2

    Best ❤️

  • @aa-op1pb
    @aa-op1pb 3 года назад +1

    Simple and easy to understand 👍

  • @Muslim-155
    @Muslim-155 5 месяцев назад +1

    learning this for grde 10

  • @dontlookplease2393
    @dontlookplease2393 Год назад +1

    great video !! i was wondering if the points inside and on the ppc are attainable or not

    • @SocratGhadban
      @SocratGhadban  Год назад

      Thanks, inside and on the pff yes, outside not and this why it's called frontier..

  • @meyk7653
    @meyk7653 Год назад +1

    Thanks that’s really helped!

  • @espoirbash2779
    @espoirbash2779 3 года назад +2

    Thank you for the help.

  • @mbuguawamwere7025
    @mbuguawamwere7025 Год назад +1

    great lesson, what app are you using to draw that?

    • @SocratGhadban
      @SocratGhadban  Год назад +1

      Thank you, I did it simply on PowerPoint

    • @mbuguawamwere7025
      @mbuguawamwere7025 Год назад

      @@SocratGhadban one last question. Is F or B more efficient than D or E?

    • @SocratGhadban
      @SocratGhadban  Год назад +1

      @@mbuguawamwere7025 All these points are the same regarding efficiency, but it depends on the entity in question to choose at what point to produce based on certain market information

    • @mbuguawamwere7025
      @mbuguawamwere7025 Год назад +1

      @@SocratGhadban Uh huh! so this is where market demand and allocative efficiency come in. Cheers🍻

  • @4o_fessor
    @4o_fessor Месяц назад +2

    My question is that
    why the frontier of ppf is always curved (bowed out) why not straight 😢😢😢

    • @SocratGhadban
      @SocratGhadban  Месяц назад +1

      Good question, mainly it's bowed representing increasing opportunity costs. As more of Good A is produced, increasing amounts of Good B must be sacrificed because the resources are less efficient when transferred between the two goods. This is the typical shape of the PPF in most economic scenarios. however you can have Straight-Line PPF This represents constant opportunity costs. Convex PPF This represents decreasing opportunity costs. In this case, as more of Good A is produced, the amount of Good B that must be sacrificed decreases, possibly due to improved specialization or efficiency in production. This shape is less common in real-world economies but theoretically possible.

    • @4o_fessor
      @4o_fessor Месяц назад +2

      @@SocratGhadban thanks 🙏🏻 sir I m from India Bihar

    • @SocratGhadban
      @SocratGhadban  Месяц назад

      @@4o_fessor nice meeting you, connect on Linkedin!

  • @melishamoses624
    @melishamoses624 Год назад +1

    if the producer is producing at point B and decides to produce at point E ,what would happen to the production level of both goods like in terms of gain and loss

    • @melishamoses624
      @melishamoses624 Год назад

      if the producer is producing at point B and decides to produce at point F ,what would happen to the production level of both goods in terms of gain and loss.
      🙏🏻

    • @SocratGhadban
      @SocratGhadban  Год назад

      In this case he will lose 25 Beer and will gain 10 Wine

  • @ekisadavison4520
    @ekisadavison4520 2 месяца назад

    Thanks alot

  • @yonaneffati3516
    @yonaneffati3516 Год назад +1

    i cant find any video explaining how to calculate opp cost of A to B ( so inefficient point to efficient point ). Do i use the same method as point B to F or is it impossible? pls help me

    • @SocratGhadban
      @SocratGhadban  Год назад

      One assumption for the PPF model that the economy/ firm is producing efficiently... When moving from A to B you have no loss but gain on both levels beer and wine. Thus, the opportunity cost is zero and linked to the fact that you were in an inefficient point which means not employing or using the resources on hand.. (keep in mind that we have only two choices of production and there is not third one which might change the interpretation)

  • @ericleung11
    @ericleung11 2 года назад +1

    Imports accounted for abour 70% of sales of port meat in Australia. Pork imports from Denamrk, Canada, and the
    United States rose 48% in the past year. Australian producers receive about $2.30 per kilogram, which costs $3 to
    produce.
    Canada is an important supplier of pork meat to Australia, while Australia exports wine to Canada.
    Draw both an Australian and a Canadian PPF for wine and pork which are consistent with this pattern of trade. Lable the
    curves.
    Vertical -Wine (thousands of bottles)
    Horizontal - Pork meat (thousands of kilograms)
    Plese can anyone help to solve this question ?

    • @SocratGhadban
      @SocratGhadban  Год назад

      For Australia, since the cost of producing pork is higher than the price they receive, it means that their production of pork is not efficient, and they could produce wine at a lower cost. Therefore, the PPF for Australia would show that they have a comparative advantage in producing wine, and their production of pork is limited due to high costs.
      For Canada, since they are an important supplier of pork meat to Australia, it suggests that they have a comparative advantage in producing pork. Thus, the Canadian PPF would show that they have a higher potential for producing pork than wine.

  • @jackiepar7103
    @jackiepar7103 2 года назад +1

    Does the point c show scarcity

    • @SocratGhadban
      @SocratGhadban  2 года назад

      in all cases you have scarcity check the following video that defines scarcity ruclips.net/video/TbOTx-HDuoo/видео.html

  • @IgneaResistentia
    @IgneaResistentia 3 года назад +1

    Thank you so much.

  • @rayanehammoud2258
    @rayanehammoud2258 4 года назад +1

    Good job😃

  • @sarahtrabolsi3727
    @sarahtrabolsi3727 4 года назад +2

    very helpful!! thank youu

    • @SocratGhadban
      @SocratGhadban  4 года назад

      Thank you Sarah! Good luck on your exam!

  • @thinukawijerathne
    @thinukawijerathne 2 года назад +1

    Thanks 😊

  • @rohitkasbe1165
    @rohitkasbe1165 3 года назад +1

    Thanks sir🙏

  • @aishamahama4158
    @aishamahama4158 3 года назад +1

    Under what circumstances can a country produce at point c

    • @SocratGhadban
      @SocratGhadban  3 года назад +1

      Given the current state of production and technology point C is unreachable, however on the long run which means with a new technology or with time the whole PPF moves to the right and point C becomes attainable!

    • @aishamahama4158
      @aishamahama4158 3 года назад

      Can opportunity cost be the reason to produce at point c?

    • @SocratGhadban
      @SocratGhadban  3 года назад +1

      @@aishamahama4158 no, the reason is being more efficient, so with the same resources you can produce greater quantities of goods and services in question

  • @tae_tee_btsarmy7664
    @tae_tee_btsarmy7664 9 месяцев назад

    How did you get, Efficiency point? How did you calculate it

    • @SocratGhadban
      @SocratGhadban  9 месяцев назад

      If you mean the different points, they are given

  • @ralphkoyess722
    @ralphkoyess722 2 года назад +1

    Kbirr