Basic Production Possibilities Analysis The Production Possibilities model describes the limits of what a society can produce. Consider the following production possibilities, then plot, label and connect the points to form a Production Possibilities Frontier (PPF) in the figure. Production Mangoes Passion Possibility Fruit 500 0 400 200 300 350 200 425 Passion Fruit 100 475 0 500 List the three main assumptions of the PPF model. a. Mangoes 1. What shape does the PPF have? (linear, concave, convex) 2. What does the shape of the PPF suggest about the opportunity cost of producing additional mangoes or passion fruit? (increases, decreases, constant) Draw point (300, 300) on your graph. Label the point G. 3. What can you say about this level of output? (obtainable, unobtainable) 4. What can you say about the use of resources? (unobtainable, efficient, inefficient)