Scarcity

Definition of profit: Profit is a valuable return  or gain. It is the excess of returns over expenditure in a transaction or series of transactions especially, the excess of the selling price of goods over their cost. It can also be called a net income usually for a given period of time. A ny profits earned in a business funnel back to business owners, who choose to either pocket the cash or reinvest it back into the business.

PRODUCTION POSSIBILITY FRONTIER (PPF) A  production possibility frontier  ( PPF ),  production possibility curve  ( PPC ), or  production possibility boundary  ( PPB ), or  transformation curve/boundary/frontier  is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for two products that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such as  allocative efficiency ,  economies of scale ,  opportunity cost  (or marginal rate of transformation), productive efficiency, and  scarcity  of resources (the  fundamental economic problem  that all societies face).