2 Opportunity cost ,

Prévia do material em texto

Opportunity cost 
Introduction 
opportunity cost represents the opportunity forgone in each possible decision
opportunity cost is simply the cost of foregone alternatives. It is the cost of the best alternative, which has been sacrificed in order to spend the available resources on a certain need.
Individual consumers, firms and governments use this concept to ensure that the available resources are used efficiently. It measures the cost of what has been foregone in financial or monetary terms.
Production Possibility Curve 
 The production possibilities frontier is a graph that shows the various combinations of output—in this case, cars and computers—that the economy can possibly produce given the available factors of production and the available production technology that firms use to turn these factors into output.