Youve seen that moving from one point to another on the PPF involves a tradeoff. But what
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You’ve seen that moving from one point to another on the PPF involves a tradeoff. But what are the terms of the tradeoff? How much of one item must be forgone to obtain an additional unit of another item—a large amount or a small amount? The answer is given by opportunity cost—the best thing you must give up to get something (see here ). We can use the PPF to calculate opportunity cost.
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