EP3

EP3

define-

opportunity cost- The loss of potential gain from other alternatives when one alternative is chosen.

accounting cost- the monetary cost

economic cost- the costs added together

production possibility curve- In economics, a production-possibility frontier (PPF), sometimes called a production-possibility curve or product transformation curve, is a graph that compares the production rates of two commodities that share the same factors of production. The PPF curve shows the specified production level of one commodity that results given the production level of the other.

law of diminishing returns- a law affirming that to continue after a certain level of performance has been reached will result in a decline in effectiveness

2. the opportunity cost is facebook and studying.

3.they decide that its more important to go to college instead of a family thus the opportunity cost is a family.

4.

a. no because they are made in different quantities

b. yes because they meet on the graph

5. the production of cola and lemon sodas