<P> Graphically bounding the production set for fixed input quantities , the PPF curve shows the maximum possible production level of one commodity for any given production level of the other , given the existing state of technology . By doing so , it defines productive efficiency in the context of that production set : a point on the frontier indicates efficient use of the available inputs ( such as points B , D and C in the graph ) , a point beneath the curve ( such as A ) indicates inefficiency , and a point beyond the curve ( such as X ) indicates impossibility . </P>
points outside the production possibilities curve represent combinations of products that are
a point beneath the curve ( such as A ) indicates inefficiency a point beyond the curve ( such as X ) indicates impossibility