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Production possibilities and opportunity costs

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Intro to the production possibilities frontier (PPF)

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Intro to the production possibilities frontier (PPF)

6:45

About this lesson

Production Possibilities and Opportunity Costs Overview:
Production Possibilities Frontier
  • All possible choices of production
  • Limits to the production of two goods
  • Key Ideas
  • Production efficiency and product inefficient

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Video 1 of 14

Intro to the production possibilities frontier (PPF)

7 min

Selected

Understanding opportunity cost as a ratio along the PPF

3 min

Plotting a production possibilities frontier for pops and bananas

2 min

Finding banana production for efficiency at 11 pops per day

1 min

Identifying productively inefficient points on the PPC

1 min

Finding the trade-off of one more banana from an interior point

2 min

Drawing a PPF for a business producing cars and tires

3 min

Finding tire production for efficiency at two cars per day

1 min

Identifying productively inefficient points below the PPF

1 min

Identifying an unattainable point outside the PPF

1 min

Calculating opportunity cost per car from a production table

3 min

Calculating opportunity cost per tire when increasing production from 10 to 19

2 min

Identifying the reciprocal relationship between opportunity costs

1 min

Determining if there is an increasing opportunity cost of cars

3 min