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Unformatted text preview: B A C Point B unattainable Points A and C both equally efficient Point D inefficient More of one good less of another Illustrates opportunity costs in production (the slope) [rise/run]-in this case 50/100 = 1/2 10x10= 100 Fish/bars 5x10= 50 Birds/bars Economic growth = increase in production of goods and services (If we get 5 more candy bars, opportunity cost goes up in ratio [parallel shift of graph]) As you get better at catching birds, the opportunity cost of fishing goes up If you measure the opportunity cost (increasing, upward sloping) Marginal cost of catching fish in terms of birding Opportunity Cost Best place to produce Marginal Benefit What if catching fish gets harder and harder the more you fish? (removing fish from the pond) – diminishing marginal productivity...
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