What is opportunity cost? Opportunity cost is a fundamental concept in economics that refers to the cost of something in terms of the next best alternative that must be given up in order to obtain it. It represents the value of the benefit that is f…
In this article, we're gonna talk about specialization and trade. Specialization and trade are a way to consume outside of the Production Possibilities Frontier . Let's say we've got our PPF for an economy where you can produce food …
In this article, we're gonna discuss how the production possibilities frontier can be expanded. So let's say we had an economy that produces food and it produces natural gas and if this economy focused strictly on producing food, it woul…
Inefficient production is a production where all the resources are not used efficiently. So let's say we're looking at an economy that can produce two goods it can produce food and it can produce steel. If it's strictly focused on produ…
In this article, we're going to talk about production efficiency in economics. So production efficiency refers to a situation in which the economy is producing so many goods. Let's say that it's producing food and steel it's produc…
In this article, we're going to discuss the concept of Allocative Efficiency . When we look at a production possibilities frontier let's say for food and for clothing, we know that every point along the PPF is efficient in production, and wh…
In this article, we're going to discuss how to graph the marginal benefit curve. When we were doing our production possibilities frontier earlier we were identifying the maximum amount of food and clothing that an economy could produce given t…
In this article, we're gonna talk about how to graph the marginal cost curve when you have a production possibilities frontier . So we use the following data in a previous article to create a production possibilities frontier and we assume t…
