Production Possibilities Curve

The reason behind the Production Possibilities Curve's convex shape is because of its limited resources while trying to produce different goods. We are always trying to maximize our profit in the most efficient way by producing goods that are most wanted. In the graph, it  shows that we can only produce n amount of goods x+y. Therefore, as we are trying to reach the optimal production, we have a trade-off, considering its opportunity cost. When Good Y is in its highest production (point A), no Good X is being produced because Good Y has already maximized the amount that could be produced and vice versa at point F.

However, there are times when other people choose another way, instead of the most efficient way, such as point C which is inside the curve. This is an efficient way as it is producing less of each good than is possible given the society's resrouces. And also when are expecations are higher than what the society can produce, like point E. It is at  unattainable as our current resources and technology is limited.

This can all be concluded in the law of increasing opportunity costs which gives the PPC its convex shape.