If I owned a business a PPC would tell me all possible production possibilities for two products.
growth and increasing of production would cause my PPC shift outward
the best way to determine whether or not we are making a rational economic decision is by seeing if the marginal benefits exceeds the marginal costs
Companies choose to specialize and trade because they have a comparative advantage. Also division of labor increases production, profit and trade. If companies didn’t specialize then production, profit, and trade would decrease.
I feel that I really grasp this concept. Two things that confuse me however is comparative advantage and marginal benefits exceeding marginal costs. When I answer questions about those two things my mind is a little shaky
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