Trade Off
- Alternatives we give up whenever we choose one course of action over another.
- Opportunity costs
- Next Best Alternatives
- Fixed Costs
- Costs that don't change no matter how is produced
- Ex: Rent, Mortgage
- Variable Cost
- Cost that rises or falls depending upon how much is produced
- Ex: Electricity
- Marginal Cost
- Cost of producing one more
- Unit of good
PPC
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