how does a production possibility chart assist in outlining opportunity cost? it compares consumer demand of…
how does a production possibility chart assist in outlining opportunity cost? it compares consumer demand of one product to another. it compares profit potential of one product to another. it compares production cost of one product to another. it compares production numbers of one product to another
Answer
Brief Explanations:
A production - possibility chart shows the different combinations of two goods that can be produced with given resources and technology. Opportunity cost is the cost of forgoing one good to produce another. By comparing the production numbers of one product to another on the chart, we can see how much of one product must be given up to produce more of the other, which outlines the opportunity cost.
Answer:
It compares production numbers of one product to another.