BIOCH498 Lecture Notes - Lecture 14: Better Off, Capitalism, Satisficing
13 Jun 2015
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Point a b c d e f g are attainable. Point a b c d e f are efficient. Production possibility frontiers (ppf) - determines/indicates attainable (in or on the curve) or unattainable (out of the curve) what combinations of goods/services a society can produce given certain amount of resource/level of technology. Opportunity cost - foregone benefits of not using the resources in the next best alternative way. Sleep (); work (); study (); party (); recreation (); daytime tv (sh. 20) Consider the cost of a 4 year degree at the u of a (~ 000 all 4 years): Opportunity cost - instead of going to university, you could have worked for . Opportunity cost (4 years) = 000. Total cost (4 years) = 000. Opportunity cost = what is given up / what is gained i. e. in 1 tractor row #2, sweater #19 - #20 = 1, therefore cost = 1 sweater for 1 tractor.
