Different between opportunity cost and production possibility frontier
Opportunity cost refers to the potential benefits that are foregone when choosing one alternative over another. It represents the value of the next best alternative that is not chosen. It is a concept used in decision-making to assess the trade-offs involved in choosing one option over another.
On the other hand, the production possibility frontier (PPF) is a graphical representation of the maximum output combinations that can be produced using the available resources and technology. It shows the trade-offs between producing different goods and services given limited resources. The PPF illustrates the different combinations of goods that can be produced at maximum efficiency.
In summary, opportunity cost is the value of the next best alternative that is forgone when making a decision, while the production possibility frontier shows the maximum output combinations that can be produced with the available resources and technology.