Eficiência de Entrada: Curva de Contrato de Produção

The production contract curve represents a set of Pareto-efficient input allocations between two producers given a fixed total endowment of resources.

Each point on the contract curve represents an allocation where inputs cannot be reallocated to increase one firm’s output without reducing the other’s. This efficiency occurs when both producers have an equal marginal rate of technical substitution for their inputs, such as capital and labor.

The graph illustrates how capital and labor inputs are distributed efficiently between the two producers.

At point H, located in the lower-left corner, Farmer B uses all inputs to produce oranges, while Farmer A’s inputs to produce apples remain zero. 

As we move from H toward point I, inputs shift gradually from Farmer B to Farmer A, leading to an increase in inputs for apple production and a decrease in inputs for orange production. 

Progressing further along the curve continues this trend, with Farmer A’s input resources climbing at the expense of Farmer B’s. 

Ultimately, at point J, positioned in the upper-right corner, Farmer A employs all inputs to produce apples, leaving Farmer B with zero inputs for orange production.