Inefficient use (under-utilization) of resources The full employment of resources in production efficient combinations of output will always be on the PPC. The value of the next best alternative to any decision you make for example, if Abby can spend her time either watching videos or studying, the opportunity cost of an hour watching videos is the hour of studying she gives up to do that. ![]() (also called a production possibilities frontier) a graphical model that represents all of the different combinations of two goods that can be produced the PPC captures scarcity of resources and opportunity costs.
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