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Explain how the production possibilities curve model shows the concept of opportunity cost.

User Fofole
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The production possibilities curve (PPC) is a graphical representation of the maximum combinations of two goods that a society can produce given its resources and technology. The PPC is typically drawn as a curve, with each point on the curve representing a different combination of the two goods.

The concept of opportunity cost is shown in the PPC model because the curve represents the trade-off between producing one good versus another. The slope of the PPC represents the opportunity cost of producing one good in terms of the other good. The opportunity cost is the value of the next best alternative that must be given up in order to produce one more unit of a good.

User Markthegrea
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