Asked by Kalin Williams on Jun 30, 2024
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If economic resources were perfectly adaptable to alternative uses, then there would be constant opportunity costs along the production possibilities curve.
Opportunity Costs
The advantages or gains a person, investor, or company forgoes by selecting one option instead of another.
Economic Resources
Resources required for the production of goods and services, including labor, capital, land, and entrepreneurship.
Production Possibilities
The various combinations of goods and services that can be produced in a given timeframe, using all available resources and technology.
- Understand the principles of marginal analysis and the notion of opportunity costs in the context of making economic decisions.
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Learning Objectives
- Understand the principles of marginal analysis and the notion of opportunity costs in the context of making economic decisions.
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