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Production possibility set
The set of all non-negative outputs of goods and services that can be produced using the economy’s available factor inputs. The output combinations on the frontier of this set correspond to the Pareto-efficient allocation of factor inputs, i.e. the allocation at which it is not possible, given the factor endowment, to increase the production of one good without decreasing the production of some other good.
Reference: Oxford Press Dictonary of Economics, 5th edt.
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