Schedule: The table above showing the varying units of X and Y goods produced is called a Production Possibility Schedule. It is a schedule in the sense that at any moment, if we consider the units of X (say 3) to be produced, then the maximum possible units of Y which can be produced (11) can also be known. It is not necessarily based on an empirical or any trial and error method. The relevant information is a result of certain economic hypothesis about production behavior. The schedule is based on certain important assumptions. These include the following : a.The total quantity of various resources and services available for production is fixed. b.All available resources must be fully utilized. c.Technical conditions and knowledge (methods of production) remain fixed; and, d.Only two goods X and Y are produced with these resources.
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