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The Learning Activity titled “The Production Possibilities Curve” explains concepts that relate the production possibilities curve to scarcity and opportunity cost. Look at Figure 1.3 and select any two points out of points A-C, D-F, or G-I, on any of the three graphs, and explain the opportunity cost between these two points. Also, explain how this graph relates back to the concept of scarcity. Lastly, provide your own example of a production possibilities curve by selecting two goods or services and explaining how it relates to the concept of scarcity and opportunity cost.
Figure 1.3 Production Possibilities at Three Plant is attached.
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