What does the concept of opportunity cost represent in the context of a Production Possibility Curve (PPC)?

Opportunity cost is the idea that when you choose one option, you give up the chance to choose another. In the context of a Production Possibility Curve (PPC), this means that when a country or company decides to produce more of one good, it must reduce the production of another good. The PPC shows the maximum possible production levels of two goods, highlighting the trade-offs involved. For example, if a farm decides to grow more corn, it might have to use land that was previously used for growing wheat, representing the opportunity cost of wheat lost. This concept helps us understand the limits of resources and the importance of making careful choices.