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seropon [69]
3 years ago
8

How does a production possibility chart assist in outlining opportunity cost?

History
1 answer:
LenKa [72]3 years ago
8 0

The production possibility chart/frontier assist in outlining opportunity cost as it compares the production cost of one product to another. The purpose of this curve/chart/frontier is to show the different combinations/mixture of two goods that are produced by the given resources.

<u>Assumptions of production possibility frontier; </u>

1. A certain amount of resources is given.

2. Full and efficient use of available resources has been done.

3. Change in technique.

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