What is produced when graphing the information in the production possibilities schedule?

When graphing the information in a production possibilities schedule, the result is a production possibilities frontier (PPF). The PPF illustrates the maximum feasible amount of two goods that can be produced with available resources and technology. This curve shows the trade-offs between the two goods; as production of one good increases, the production of the other good decreases, reflecting the principle of opportunity cost.

The PPF is concave to the origin due to increasing opportunity costs—resources are not perfectly adaptable to the production of both goods, leading to a more significant sacrifice of one good when increasing the production of the other. This graphical representation allows economists to visualize efficiency, inefficiency, and unattainable production levels given the current resource constraints.

In contrast, the other options represent entirely different concepts in economics. A supply curve reflects the relationship between the price of a good and the quantity supplied, a demand curve shows the relationship between the price and quantity demanded, while a marginal cost curve illustrates the cost of producing one more unit of a good. Each serves a unique purpose in economic analysis, reinforcing the distinct role of the production possibilities frontier in understanding resource allocation and production capabilities.