<u>The demonstration of the opportunity cost is done through production possibility.
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Further explanation:
Opportunity cost: The opportunity cost is the dollar value of the next best possibility that is left in order to go with a specific alternative. The tendency of limited resources with economies and individuals depicts that they have to incur an opportunity cost while deciding to go further with a specific alternative.
Production possibility: The production possibility explains the different combinations of goods that an economy can produce using the specific level of resources. The production possibility curve shows all these combinations diagrammatically. It shows that the opportunity cost of producing good keeps on increasing as more of that is produced. This is because the resources are already allocated to their suitable uses and any reallocation will impose a higher cost on the economy.
Therefore, production possibility helps in demonstrating the opportunity cost.
Learn more
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- Learn more about the opportunity cost <u>brainly.com/question/10944958
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- Learn more about the production possibility curve <u>brainly.com/question/8103430</u>
- Learn more about the production of the goods <u>brainly.com/question/9356259
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Answer details:
Grade: High School
Subject: Economics
Chapter: Nature of Economics
Keywords: demonstrating, opportunity cost, is done through, production, different production levels, allocation of resources, any reallocation of resources, higher cost impose to the economy, next best, alternative, deciding to go, with a specific alternative, economy, implicit costs, level of opportunity costs.
