We are looking at the PPF....in terms of NOT invidual market goods....but in terms of WHOLE economy production. ALL CONSUMER GOODS PRODUCED vs. ALL CAPITAL GOODS PRODUCED. Remember that companies can sell consumer goods to you...like Samsung sells Washing Machines to households. Companies can also produce and sell capital goods...like John Deer produces and sells Tractors to farmers. Companies can choose to make consumer goods, capital goods, or a combination of the two.
