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How many companies in the industry have expanded their production capacity since Year 10 one of the following has little bearing on whether profitable opportunity exists to install additional new or refurbished production equipment in the upcoming decision round.
A production potential frontier (PPF), which provides a solution to the question of what the greatest production capacity of a certain economy is and entails using as many of the economy's resources to produce the output as is feasible, shares many similarities with productive capacity. Two different types of goods have their quantities set in a typical PPF graph. PPF develops a downward-sloping line by expressing all the combinations of these things that can be produced as much as possible by a particular economy due to its limited resources. Anywhere a body crosses the line below indicates that it is producing below its maximum capacity. When the body combines the two graphed goods to a point that is on the PPF line, the body is said to have reached that point.
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