Production Possibility Curve #1

Law of Increasing Opportunity Cost:
-When resources are shifted from making one good or service to another, the cost of producing the 2nd item increases.
- This occurs because not all resources are equally suited for production of all goods and services.

4 key Assumption of Possibility Graphs:

1. Only 2 products can be produced
2. Full employment of resources
3. Fixed resources

      - Land
      - Labor
      - Capital
     4. Fixed Technology
   
A. Attainable but inefficient
B, C, & D. Attainable and efficient
X. Unattainable: 1) Technology 2) Economic Growth

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