A production possibilities curve measures opportunity cost in dollar terms.

Question

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A production possibilities curve measures the maximum combinations of two goods or services that can be produced with the available resources and technology. It does not measure opportunity cost in dollar terms, but rather in terms of the trade-offs between the production of one good or service and the production of another. Opportunity cost is the value of the next best alternative foregone when a choice is made, and it is not necessarily measured in dollars.

A Production Possibilities Curve Measures Opportunity Cost in Dollar Terms