In a scenario where resources are scarce, how does the concept of opportunity cost affect the production possibility curve (PPC) when considering marginal benefits of two goods?

When resources are scarce, opportunity cost becomes very important in understanding how we make choices about production. The production possibility curve (PPC) shows the maximum amount of two goods that can be produced with limited resources. If we want to produce more of one good, we have to give up some of the other good, which is the opportunity cost. For example, if a factory can make either cars or bikes and decides to make more cars, it must reduce bike production. This trade-off illustrates how opportunity cost affects decisions and shapes the curve, showing that increasing one good's production comes at the expense of the other.