Production possibilities curve
Definition
Consider two goods and , and a graph whose axes represent quantities of and respectively. Each point corresponds to a quantity of produced (its -quantity coordinate) and a quantity of produced (its -quantity coordinate). We say that one point dominates another if, in both coordinates, its value is at least as much as that of the latter.
The production possibilities curve or production possibilities frontier is the set of points in this graph such that it is possible to produce the quantities of and given by that point, but no point that dominates it can be achieved. In other words, it is the frontier, or boundary, of the possible quantity combinations that can be produced.