Short Answer 
The Production Possibilities Curve (PPC) illustrates a company’s maximum production capacity, shifting right with increased resources or left with losses. Market supply curves are affected by rising costs, leading to higher equilibrium prices, while stability in supply conditions occurs when no new costs are introduced, keeping equilibrium prices unchanged.
Step 1: Understand the Production Possibilities Curve (PPC)
The Production Possibilities Curve (PPC) illustrates a company’s maximum production capacity given its resources. When a construction company gains more land, the PPC shifts to the right, indicating an increase in production capability. Conversely, if the company loses land due to issues like risks of cave-ins, the PPC shifts left, signaling a decrease in production potential.
Step 2: Analyze Market Supply Curve Shifts
The market supply curve reflects the relationship between the quantity of goods supplied and the price level. Factors that lead to an increase in costs for firms will generally shift this curve to the left. Key scenarios include:
- Fines for carbon emissions increasing production costs.
- Legal costs from pollution lawsuits impacting supply.
- Cleanup costs from environmental damage affecting operational expenses.