Expressions 1.3.5 Direct

: If moving from Point B to Point C results in 5 fewer cakes but 30 more muffins, the opportunity cost of those 30 muffins is the 5 cakes sacrificed. 4. Strategies for Growth

: A common example includes baking Muffins and Cakes . Expressions 1.3.5

: Buying a larger or faster machine to reduce production time per unit. : If moving from Point B to Point

: Any point on the line represents maximum efficiency. A point inside the curve suggests low efficiency, meaning resources are being underutilized (e.g., the oven is off while you are available to work). 3. Trade-offs and Opportunity Cost : Buying a larger or faster machine to

: Hiring more people to handle multiple tasks simultaneously, increasing the total output potential. Technical Summary Table Definition in 1.3.5 Context Point on Curve Maximum efficiency; all resources used. Point Inside Curve Inefficiency; resources or time wasted. Point Outside Curve Impossible/Unattainable with current resources. Shift Outward Economic growth via new technology or more labor.

: To produce more of Product 1, you must give up production of Product 2.

To expand the "frontier" (shift the curve outward), the report identifies two types of capital investments: