Hello everyone, I am back again to talk some more Microeconomics today.
In Chapter 1 of the Microeconomics textbook, we find figure 1.1 to 1.4 of some graphs. These graphs represent the different varieties and possibilities of each production of object A and object B. It is usually represented in a curve which helps us indicate the maximum possibilities of production of each object.
The curve depicts how much of object A must be sacrificed in order to produce more object B, this is called Opportunity cost. The graph will also depict if there is scarcity by the change in the curve. Scarcity is bound to happen in all our lives. We must sacrifice time and money to gain the things we want and do in life. Spending time with family is a very common opportunity cost we see in society today. Not many people out there want to sacrifice their money and time for family.
A significant opportunity cost for me that I experienced was spending more money and time to continue to go to school. Common situation for most people, but will benefit in the long run.
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