What does increasing opportunity costs mean? What are the implications of this idea for the shape of the production possibilities frontier?
Added by Md Sakib U.
Step 1
Opportunity cost refers to the value of the next best alternative that is foregone when a choice is made. In the context of production, it is the cost of not producing the next best alternative good or service. Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 69 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
What does increasing marginal opportunity costs mean? What are the implications of this idea for the shape of the production possibilities frontier?
Trade-offs, Comparative Advantage, and the Market System
Production Possibilities Frontiers and Opportunity costs
What is the reason for increasing opportunity costs? Why do the production frontiers of different nations have different shapes ?
Jerelyn N.
What feature of a $P P F$ illustrates increasing opportunity cost? Explain why Yucatan's opportunity cost does or does not increase.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
