ECON 101 Lecture Notes - Lecture 1: Jerky, Opportunity Cost, Marginal Cost
Document Summary
Ppf productionpossibilitiesfrontier it shows what we can make or have a is itself embodies our basic idea contraint technology we have have to make 2 products from the resources a pile or set of resources t we. The ppf must deal w products or outputs findingthe frontier ex smokes. We can make a table w our results. Il th not feasible these he cant make allocations connect pts w line y totoot jerky as feasibleinneficentfeasible r do not use all resources efficient smokes jerky point a the slope of. 2 points actually used slope is slope using. 2 points midpoint t between to calculate slope. Slopeofppt measure of opportunity cost opportunity cost value oftextbestalternative that give up in order to get something amount of smokes you you ex opportunity cost give up to get more jerky jerky of. Hopp cost of product it slope of ppf give in x axis opp cost of product slope came from midpoint.
