Expressions 1.3.5 -

: Any point on the line represents maximum efficiency. A point inside the curve suggests low efficiency, meaning resources are being underutilized (e.g., the oven is off while you are available to work). 3. Trade-offs and Opportunity Cost

: To produce more of Product 1, you must give up production of Product 2.

: A common example includes baking Muffins and Cakes . Expressions 1.3.5

: Hiring more people to handle multiple tasks simultaneously, increasing the total output potential. Technical Summary Table Definition in 1.3.5 Context Point on Curve Maximum efficiency; all resources used. Point Inside Curve Inefficiency; resources or time wasted. Point Outside Curve Impossible/Unattainable with current resources. Shift Outward Economic growth via new technology or more labor.

: The curve itself shows the limit of what can be produced. You cannot produce a quantity outside the curve because you lack the necessary resources. : Any point on the line represents maximum efficiency

: To produce these, a business requires limited resources such as: Fabric/Ingredients : Raw materials. Machinery/Equipment : Ovens, sewing machines, or mixers. Labor : The hours available for one person to work. 2. The Production Possibilities Curve (PPC)

The PPC is a visual representation of the maximum output combinations for two products. Trade-offs and Opportunity Cost : To produce more

Evaluating the "cost" of shifting production is central to this report: