ENGR 310 Chapter Notes - Chapter 1: Opportunity Cost, European Cooperation In Science And Technology
Document Summary
Chapter 2: production possibilities, opportunity cost and economic. Opportunity cost: the best alternative sacrificed for a chosen alternative. By attending class, you had to give up some time that could have been spent sleeping. If you take 2 hours break from work to get lunch (). If you get paid /hr, then, your lunch cost you . (economists vs. accountants) A curve that shows the maximum combinations of two outputs that can be produced within an economy (assuming certain conditions are present) Fixed resources = same number throughout our analysis a. Fixed resources = same number throughout our analysis. All the points along the curve are called efficient points. A movement between any two efficient points means that more of one product can be produced only if less of the other product is produced. We call this tradeoff opportunity cost. a move from c to d increases butter production by 1 ton from 2 to 3.
