econ- study of use of scarce resources in the most efficient way possible
| State | C | W | DeltaC/DeltaW |
| A | 10 | 10 | -1 |
| B | 20 | 5 | -4 |
| C | 5 | 20 | -.25 |
| D | 5 | 0 | XXXX |
| E | 0 | 5 | 0 |
State = actual states in a country, eg
C = plant state with corn
W = plant state with wheat
if you plant all corn and no wheat, you get 40 corn, also the same way for wheat
if you want a little wheat when you're making all corn, the obvious thing is to tell state E to plant wheat, because there's no opportunity cost
after you tell state E, the next rational thing is to tell state C to make wheat, because the opportunity cost is the least
the slope of the production possibility curve for each change in production is DeltaC/DeltaW
-question on the midterm exam
-would it have been possible to tweak the numbers on the graph (the C and W) to make an inward bowed PPF?
-it is possible to get a straight line, but not an inward curve
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