<p>Yes. The "curved line" clearly fits your definition as well. The PPF is curved if (but not only if) there are diminishing returns to inputs such as labor and capital. See also
<a href="https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier" rel="nofollow">https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier</a></p>

CC BY-SA 3.0
2015-10-27T07:50:16.250Z
2015-10-27T07:50:16.250Z
Giskard
<p>No they are not same. Production Possibility Frontier is the maximum amount of output that can be produced using different combination of inputs. However this opportunity frontier is the tradeoff between different outputs that a firm can produce. In order to increase production of one output it has to decrease production of another. </p>

CC BY-SA 3.0
2015-10-27T07:48:06.187Z
Actually this is called the Production Possibility Frontier.
https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier What you describe is an isoquant. https://en.wikipedia.org/wiki/Isoquant
Giskard
CC BY-SA 3.0
2015-10-27T08:04:09.107Z
You are right. My bad!
Sher Afghan
CC BY-SA 3.0
2015-10-27T07:44:30.797Z
2015-10-27T07:44:30.797Z
Sher Afghan
<p>In CFA level 1 reading 14, they have this term called Production Opportunity frontier and it is defined as </p>

<p><em>Curve describing the maximum number of units of one good a company can produce, for any given number of the other good that it chooses to manufacture.</em></p>

<p>The graph is a straight line</p>

<p><a href="https://i.sstatic.net/6hWN8.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/6hWN8.png" alt="enter image description here"></a></p>

<p>Is it the same thing as what is commonly known Production Possibility Frontier with the curved line?</p>

<microeconomics>
Is product opportunity frontier the same as PPF?
Ben
# Is product opportunity frontier the same as PPF?

(Asked by: username_0 on 2015-10-27)

In CFA level 1 reading 14, they have this term called Production Opportunity frontier and it is defined as

*Curve describing the maximum number of units of one good a company can produce, for any given number of the other good that it chooses to manufacture.*

The graph is a straight line

[![enter image description here](https://i.sstatic.net/6hWN8.png)](https://i.sstatic.net/6hWN8.png)

Is it the same thing as what is commonly known Production Possibility Frontier with the curved line?

**Tags:** microeconomics


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## 2 answers

### Answer by username_1 on 2015-10-27. Score: 2 | Accepted answer

Yes. The "curved line" clearly fits your definition as well. The PPF is curved if (but not only if) there are diminishing returns to inputs such as labor and capital. See also
<https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier>


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### Answer by username_2 on 2015-10-27. Score: -2

No they are not same. Production Possibility Frontier is the maximum amount of output that can be produced using different combination of inputs. However this opportunity frontier is the tradeoff between different outputs that a firm can produce. In order to increase production of one output it has to decrease production of another.

> **Comments:**
> **username_1**: Actually this is called the Production Possibility Frontier. https://en.wikipedia.org/wiki/Production%E2%80%93possibility_frontier What you describe is an isoquant. https://en.wikipedia.org/wiki/Isoquant  
> **username_2**: You are right. My bad!  

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