Economic term, it defines the greatest possible amount of
production an
economy can churn out at at
maximum efficiency. In textbooks it is usually depicted using an
economy with only 2 products, however, in reality, the
visualization has many dimensions, since no
economy produces only 2
goods.
The PPF can be expanded by capital investment, advances in technology, or an increase in the workforce. Inefficiency does not reduce the PPF, it merely places it at a point below the frontier.