Economics Part B

Table of Contents

Transformation curve

What is Transformation curve

A curve which shows graphically the range of possible combinations of production in a particular country, on the assumption that the country produces only two products. The curve shows the full range of alternatives available to the country for the simultaneous production of the two products. Each point on the curve represents a situation where all the resources of the country are being fully exploited. Any point to the left of the curve describes a situation where the resources of the country are not being fully exploited.

Graph 14.4