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1. Complete the table for Opportunity Cost below – note that O/C occurs going FROM one Possibility TO another so we write the value in-between lines (i.e. going from A to B).
Table 1
|
Possibility |
Cars |
Bikes |
O / C |
|
A |
0 |
40 |
|
|
B |
1 |
30 |
|
|
C |
2 |
20 |
|
|
D |
3 |
10 |
|
|
E |
4 |
0 |
|
1. Sketch the PPC for both Table 1 and then Table 2 – what do you notice about the shapes of the PPC? How does this relate to the Opportunity Cost? (cars horizontal axis and bikes vertical)
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