"A PPF shows the maximum amount of goods that can be produced with a given set of inputs" statements best explains how using a production possibilities frontier (PPF) helps set up efficient production.
Answer: Option D
Explanation:
A frontier of production possibility is a curve that randomly assigns configurations of the quantities of two items that can be extracted within the given resources. A PPF highlights many economic principles, like market efficiency, productivity improvements, cost of opportunity, quality of output and scarcity of resources.
The graphical interpretation displays all feasible output possibilities for two goods that can be generated using all manufacturing variables, where the resources provided are completely and adequately used per unit time.
