Order the following steps to illustrate the impact of opportunity cost on production decisions in a PPC context: 1) Assess the current production levels of two goods. 2) Identify the next best alternative that will be forgone. 3) Shift production towards the good with higher demand. 4) Analyze the new PPC to understand trade-offs.

To understand the impact of opportunity cost on production decisions within a Production Possibility Curve (PPC) context, we start by assessing the current production levels of two goods. Once we know how much of each good is being produced, we identify the next best alternative that we would have to give up if we decide to shift production. For example, if a factory produces cars and bikes, choosing to make more cars means giving up some bike production. After shifting production towards the good that has higher demand, we analyze the new PPC to see the trade-offs involved, which helps us understand how much of one good we sacrificed for the other. This process shows us how opportunity costs influence decisions in resource allocation.