Answer in Microeconomics for March #113224
April 21st, 2023
‘Opportunity Cost’ is always a RELATIVE concept and is never to be construed in ABSOLUTE terms, because it is a relative price of one good or service in terms of other good or service which we have to give up. So, we need just relative number.
PPF function is never strictly convex because there are no fully identical goods in real life which are perfect substitutes.