00:01
Hello everyone and welcome.
00:03
So your ppc curve in economics shows you the tradeoffs associated with the allocation of resources into two separate goods.
00:14
So they typically look something like this.
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So this is good a, this is good b, and the curve will run something like this.
00:24
So let's talk about what this means.
00:27
It's a common misconception that people think that if the point that you're producing at is at, you know, the lower part of the curve or the higher part of the curve, it says something about the efficiency.
00:37
But the truth is that if you're producing on this curve, that is the optimal use of your resources.
00:42
What happens if you're producing here? well, that means that you're under allocating your resources.
00:47
You could be producing more, but you aren't.
00:49
So that is inefficiency.
00:51
Inefficiency.
00:53
And if you're trying to produce over here outside of the curve, that's just not possible.
00:56
Given your resources...