Production Possibility Curve (5)

Problem of ‘What to Produce and in What Quantity’: This curve also reflects the problem of ‘what to produce’. If the country uses all of its resources for the production of only natural rubber, then the maximum possible production of natural rubber will be OP0. In that case, there will be no production of paddy. Similarly, if the country uses all of its resources for the production of paddy then, the maximum possible production of paddy will be OP’0. But in that case, the production of natural rubber will be zero.