Nicky has to study English and Maths and is trying to get the most efficent combination to study the maximum amount of pages during this afternoon.
Nicky's mum wants to make a cake. She is trying to find the most efficent and cheap option.
I can study 10 pages of Maths and don't study anything of English.
I can study 16 pages of English and 4 of Maths.
If I study 20 pages of English, then i can't study Maths.
I can study 7 pages of English and 8 of Maths
I can study 19 pages of English and 2 pages of Maths.
I can also study 12 pages of English and 6 pages of Maths.
Nicky's mum decide to call her best friend to ask her how does she make the cake.
In these case, the Opportunity cost of studying 2 pages of Maths, is not study 1 page of English.
If I want to study 2 pages of Maths, then I must study 1 page less of English, because it would be unattainable.
If you are going to stop studying , then you aren't being efficent. It's just an attainable option.Now, your production possibilities have decresed, I mean, you had 1 hour less for studying because you had beein watching videos.
OMG! Billie Eilish has just uploaded a new videclip. I need to watch it.
Nicky, what are you doing!? You have to study a lot!
On the other hand, the recipe book says that I can make a cake with the same ingredients, but it will take me 12 minutes.
According of what I've read on the Internet, with 5 eggs and some others ingredients, I can make a cake in 10 minutes.
Hello Karen, It's Jane. I want to make a cake. Do you have the recipe?
Wow, her cake has the same ingredients but with 7 eggs instead of 5. However, it'll take me 4 minutes less.
Sure! I usually make it with 7 eggs and it takes me 6 minutes...
Karen's recipe is economically efficient because the production cost of the cake is cheaper.
The Internet's recipe and Karen's one are the most technical efficients.
In conclusion, I will do the 6-minutes-cake of 7 eggs