ECN 201 Lecture Notes - Lecture 5: Opportunity Cost
Document Summary
Copiers goes on the y axis because the numbers go in descending order. Fax machines goes on the x axis because the numbers go in ascending order. 40,000: a to b: copiers are the oc, so the cost of it. 120,000 is 20,000 units: c to b: fax machines are the oc, so the cost of it is 40,000 units, c to d: copiers are the oc, so the cost is. If unskilled people do the job, they will produce less in first few months but as they get the skills they will start producing more in less time. There is an increase in oc because ppf is bowed out concave down. The opportunity cost of making books goes up, especially when expanding (combo c to. The y axis is clothing (descending) and the x axis is cars (ascending) A to b: opportunity cost is 20 units of clothes. C to a: opportunity cost is 20 units of cars.
