Question

what to nations and businesses use to see how much producing some good will cost them in terms of not producing other goods

Answer 1

Answer:

Countries use the production possibilities schedule and the production possibilities frontier. (PPF)

Explanation:

These are theoretical and practical tools that are used to determine the opportunity cost incurred when choosing production alternative betwen two or more goods.

In the PPF in particular, good x (for example, sugar) is shown in the x axis, and good y (for example, butter) is shown in the y axis. A curve can be drawn, that illustrates the production possibilties between the two goods: for example, a country can produce either 200 units of sugar and 100 units of butter, or 200 units of butter, and 100 units of sugar.

The points on the curve are efficieny points: production quantities in which all available resources and being utilized efficiently.

Points inside the curve are inefficient: they represent output that is produced with available resources being used inefficiently.

And points outside the curve are unattainable because of lack of resources.