Please help. What is the basic principle behind the theory of production-possibility frontier? (Economics)?

Answer:
The PPF shows all efficient combinations of output for a country when the factors of production are used to their full potential.

Say for example the country can produce two goods such as rice and corn -- the PPF is the curve resulting from the various combinations the country can produce these goods (etc. 15 sacks rice and no corn; 10 sacks rice and 5 corn; 5 sacks rice and 10 corn; and 0 rice and 15 sacks of corn)

Here's a good discussion of PPF http://www.netmba.com/econ/micro/product. Other Questions and Answers:

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