Production Possibility Curve (3)

Limited Resource: Here, the combination point N shows 0Y1 amount of natural rubber and 0X0 amount of paddy. Again, the combination point T shows 0Y0 amount of natural rubber and 0X1 amount of paddy. Thus, point N shows relatively higher amount of natural rubber as compared to point T. It implies that if the country wants to produce more of paddy, it has to reduce the production of natural rubber. This shows the limited availability of natural resources. Due to this reason, the country cannot choose any such combination like ‘H’ which lies beyond the production possibility curve.