economics

The concept of opportunity cost may be illustrated with the production possibilities frontier (PPF). The PPF is a stylized model of a macro economy that is presented to examine the production decisions in the economy and the problem of scarcity. The purpose is to show how scarce resources may be allocated to produce alternative products and, the associated tradeoffs that arise when there is a change in the mix of production
the curve illistrates that increasing production of one good reduces maximum production of the other good as resources are transferred away from the other good.

The concept of opportunity cost may be illustrated with the production possibilities frontier (PPF). The PPF is a stylized model of a macro economy that is presented to examine the production decisions in the economy and the problem of scarcity. The purpose is to show how scarce resources may be allocated to produce alternative products and, the associated tradeoffs that arise when there is a change in the mix of production

the curve illistrates that increasing production of one good reduces maximum production of the other good as resources are transferred away from the other good.