Here is an 8 minute video by PlainSense Economics that introduces the production possibility curve, then shows how we can consider choices on allocating a scarce resource (in this case study time) and finally introduces us to the concept of opportunity cost.
Let me send this question to my favorite economist and see if she can give you a more personal response. :-)
Sorry for the delay, but we had a mandatory faculty meeting today.
Jane was very resourceful in sending you a video to watch. I began to watch it and quickly realized that the introductory remarks were not entirely correct, and might be confusing. So, ignore that video and let's see if we can outline a few steps for you on basics.
Now, that is the basic info about ppc's, but I am going to attach a link to some free videos on business and economics that you will find interesting. Go to the macroeconomics portal and you will see the video on scarcity, opportunity cost and then production possibilities. it is a simple explanation and very accurate. Just remember the assumptions for the ppc and you will have it down pat.
Thank you, Karen, I was out of my element here; however, I think I actually understand your explanation.
I hope this helps Lorena too. If you need more clarity, don't hesitate to write back here. Karen is an Adjunct Professor of Economics in Texas and you are now connected to our expert. :-)
Jane Brown, Thinkfinity Community Manager