Production Possibility curve/ Production Possibility Frontier/ Transformation Curve

 

Production Possible Curve is a curve showing alternative production possibilities of two goods with given resources and techniques of production (technology).

It is also called transformation line or transformation curve because it indicates that if more of Good-X is to be produced then factors of production will have to be withdrawn from the production of Good-Y and transferred to the production of Good-X. In other words, Good-Y is transformed into Good-X.