Scarcity, choice and opportunity cost can be illustrated with the aid of a production possibilities curve (PPC), also called a Production Possibilities Frontier (PPF).
1. In terms of the above statement, discuss the importance of the production possibility frontier (PPF) and also highlight the limitations of this model in understanding Managerial Economics. (20)
(Motivate the answers with relevant diagrams)
2. Using your diagram in 3.1 and relevant examples, explain the key concepts of efficiency and inefficiency.