How to Do Production Possibilities in Excel

Production possibility curves, also known as production possibility frontiers, measure the possible output levels of two products given a limited pool of resources. Movement along such a curve specifies that one product is receiving more resources than the other. This in turn means that more of the former product can be produced, while less of the other product can be produced. Such a relationship can be displayed in Microsoft Excel using its integrated "Chart" functionality.

Instructions

1. Type labels in the cells A1 and B2 corresponding to the products you are tracking. To track the relationship between speaker and amplifier production, for instance, label cell A1 as "Speakers" and label cell B1 as "Amplifiers."

2. Fill the column of cells underneath the label cells with the production values corresponding to the column's product. Given speaker/amplifier production possibilities of 0/15, 5/14, 9/12, 12/9, 14/5 and 15/0, populate the cells as follows:

   A2: 0
   B2: 15

   A3: 5
   B3: 14

   A4: 9
   B4: 12

   A5: 12
   B5: 9

   A6: 14
   B6: 5

   A7: 15
   B7: 0

3. Click cell A1, hold down the "SHIFT" key and click the bottom-right most cell of the table. Let go of the "SHIFT" key, open the "Insert" menu and select "Chart."

4. Select "XY (Scatter)" from the "Chart Type" menu, and then select a sub-type chart that has a line running through it; any will do. Click "Next" twice.

5. Submit a title, a x-axis label and a y-axis label for your chart. Given the example, submit "Speaker/Amplifier PPF Chart," "Speakers" and "Amplifiers."

6. Open the "Legend" tab and unselect the radio button next to "Show legend." Open the "Data Labels" tab and select the radio button next to "Show value." Click "Finish" to finish making your production possibilities chart.

References

• Production Possibilities: Bowling Green State University