Conclusion of project work on ppc and opportunity cost
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Opportunity cost also called as alternative cost is the value of a choice relative to an alternative.
When an option is selected from two mutually exclusive alternatives opportunity cost is "cost" incurred by not enjoying the benefit linked with an alternative choice.
New Oxford American Dictionary explains it as "loss of potential gain from alternatives when one is chosen."
Production Possibility Curve is called an opportunity cost curve as it's the curve which depicts the combinations of two goods and services that can be generated with fuller use of a given amount of resources in the most skilled way and with a given production process.
PPC is concave to its origin.
Production Possibilities Curve (PPC) is a model used to visualize tradeoffs linked with gathering resources between production of two goods.
PPC can be utilized to show the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth.
Conclusion of project work on ppc and opportunity cost
In conclusion of production possibility curve represents all of different combinations of two goods that can be produced, ppc captures scarcity of resources and opportunity.
In conclusion of opportunity cost the value of the next best alternative to any decision you make.