Production Possibilities Curve;Rational Decision Making;and Specialization

1.If i owned a business a production possibility curve would tell me what quantity of a non-essential good or a service an economy can afford to produce without jeopardizing the required production of an essential good or service. If there is an increase in technology or increase in the workforce or services the production possibilities curve would shift outward.

2.In order to decide whether or not i am making a rational economic decision i would use opportunity cost. Which means making the best choice between two options.

3.Companies choose to specialize because they are able to produce more of the finished product with workers each having specific skills to complete that are combined to make the finished product rather than one worker making an entire product by theirself which would take more time. Companies trade in order to invest in products they are not able to specialize in or produce than another product.

PPC shows the possible prodution rates of a product and the maximum capacity of 2 goods that can be produced using current resources.

 Entrprenuership: owner of a self business that produces its own products

Reflection: I fully understand this standard. I like this standard best because i can use things from the standard to relate to real life situations more than other standards.

1. In what type of situations can i use rational decision making?
2. Do all businesses use the production possibilities curve?