Introduction of Business economics

        The business is very important part of every society because without this no any economy can survive or run. So the economy need effective running of business to achieve its highest position and the overall income of the country going to increase when all the departments of the business work effectively. Economy include many factors like supply, demand, profit margin and policies that are supporting tools for running business more effectively and generate more profit.

Production possibility frontier of Business economics

        At macroeconomic level, the stage where country’s economy effectively generates its goods and services and utilize its resources in the excellent way to achieve best results. If according to production possibility frontier the economy didn’t generate the production then the stability of economy is not possible and resources will never managed in proper way. Production possibility frontier provides detail information about the limitation of the production so the economy has to produce with best combination of good s and services to achieve the target efficiently.

        In the given graph, the curve of ppf is going to represented with point A, B, C as the economy use the resource in most efficient manner. Point X show that the use of resources inefficiently and point Y show the level of resources that is not possible to obtain. An opportunity cost also going to involve in reallocating the resources from one product to another. The diagram of the production possibility frontier can be drawn on concave to the origin. Because all th factors of input are not suited to production items so law of diminishing return. It also explain the concept of effects of economic growth and tradeoffs. Combination of capital goods and output of consumers are shown inside the PPF when the resources are inefficiently used or resources are unemployed. And beyond the PPF combination happen are unattainable.