What is the opportunity cost of moving from one efficient combination of production?

The opportunity cost of moving from one efficient combination of production to another efficient combination of production is how much of one good is given up in order to get more of the other good. The shape of the PPC also gives us information on the production technology (in other words, how the resources are combined to produce these goods).

What is opportunity cost?

Opportunity cost represents the potential benefits that a business, an investor, or an individual consumer misses out on when choosing one alternative over another. While opportunity costs can't be predicted with total certainty, taking them into consideration can lead to better decision making.

What is the opportunity cost of studying economics?

If we spend that £20 on a textbook, the opportunity cost is the restaurant meal we cannot afford to pay. If you decide to spend two hours studying on a Friday night. The opportunity cost is that you cannot have those two hours for leisure. The fundamental problem of economics is the issue of scarcity.