Explore opportunity cost and the production possibilities curve in this lesson summary on economic concepts from Khan Academy.

Opportunity cost is the trade-off that one makes when deciding between two options. The example of choosing between catching rabbits and gathering berries illustrates how …

Each curve has a different shape, which represents different opportunity costs. The bowed out (concave) curve represents an increasing opportunity cost, the bowed in (convex) curve …

Using a correctly labeled PPC model, show an economy that has increasing opportunity costs that can produce cattle prods and chocolate donuts that is underutilizing its labor.

You can actually think about what is the opportunity cost of producing an incremental spoon in terms of forks. How many forks do you have to trade off because remember, there's scarcity at …

The concept of opportunity cost in economics can change depending on the scenario. For example, there might be a trade-off between hunting for rabbits or gathering berries. As one …

The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the …

Practice what you've learned about opportunity cost and the PPC model in this exercise. Topics include how to interpret the PPC, how the PPC shows opportunity costs, and how to represent …

Oops. Something went wrong. Please try again. Uh oh, it looks like we ran into an error. You need to refresh. If this problem persists, tell us.

In this video, we use the PPCs for two different countries that each produce two goods in order to create an output table based on the data in the graph. We then use the output table to …