Ask AI: Explain the economic concept of production possibilities frontier in your own words and give a real-world example

The Production Possibilities Frontier is an economic concept that demonstrates the maximum potential output of two products or services given a set amount of available resources. It is a graphical representation of the maximum output that a company or economy is capable of producing given certain constraints of resources. An example is if a country has limited resources to produce cars and TVs, it can produce a certain maximum number of either product given the resources available. This boundary is known as the production possibilities frontier and can be represented graphically.