Economics

"1. Opportunity cost: The opportunity cost is the forgone benefit which would have been derived from the option which are not chosen. Also, to properly evaluate the opportunity costs, the costs and benefits of every option that are available needs to be considered and weighed against the others.

Production possibility frontier (PPF): This is basically a curve which illustrates the varying amounts of the two products which could be produced when both of them depend on the same finite resources. Also, the PPF demonstrates that the production of one commodity could increase only if the production of the other commodity decreases. Also, the PPF is a decision-making tool for the managers who decides on the optimum product mix for the company."