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<br>In this example, the opportunity cost of providing an additional 30 textbooks equals five more computers, so it would only be able to give out one computer with 78 textbooks. If it wanted more computers, it would need to reduce the number of textbooks by six for every computer. As resources are taken from one product and allocated to the other, another point can be plotted on the curve. Considering that resources are limited, if the desire is to produce more of one product, resources must be taken away from the other. |
