What does the Production Possibility Curve (PPC) illustrate regarding opportunity cost in economics?

The Production Possibility Curve (PPC) is a visual tool used in economics to show the different combinations of two goods that can be produced with a fixed amount of resources. It illustrates the concept of opportunity cost, which is what we give up when we choose one option over another. For example, if a country decides to produce more cars instead of computers, the PPC shows how many computers it must sacrifice to make those additional cars. The curve itself demonstrates that as you increase production of one good, the opportunity cost of producing more of that good rises, meaning you have to give up increasingly larger amounts of the other good. This helps us understand the trade-offs involved in making economic choices.