Hospitality Economics

The Production Possibility Curve also known as Production Possibility Frontier (PPF) is a concave line to the origin of a two axes (X & Y at 90 degrees) diagram. It indicates maximum output combinations of two products (goods and services) that an economy is capable of achieving when all resources are fully and efficiently utilized. Resources used in production are limited and scarce which means that an economy would choose to reallocate resources from one product to another to achieve the set output targets. This is the concept of Opportunity Cost. Production Possibility Curve is also commonly known as Production Possibility Frontier (PPF) or the Transformation Curve. PPF applicability in the Hospitality Industry is to definitely assist managers and owners to determine the best combination of products that can be efficiently produced using the available resources. The basic assumption is that technology and all other factors remain constant so managers and decision

What is Hospitality Economics? Hospitality Economics is a branch of Micro-Economics that focuses on the general economic behavior of the Hospitality Industry. Hospitality Industry as defined by Wikipedia  https://en.wikipedia.org/wiki/Hospitality_industry  is comprised of various sectors such as restaurants,hotels,resorts,amusement parks etc. Economics in simple terms is basically the study of how scarce resources are used and allocated by the humankind in efforts to satisfy the unlimited needs and wants. Economics as a field of study is divided into two branches; Micro Economics Macro Economics Micro Economics This branch of Economics involves the study of the behavior of individual Economic Units. In our case we focus on the Hospitality Economic Unit. Macro Economics Focus here is on the entire Economic System Issues such as Inflation,Employment,Imports,Exports etc. Economists over the years have developed two main approaches or methodologies used in the st