Opportunity cost is best demonstrated through production possibility analysis, which shows the trade-offs between two goods produced with limited resources. The Production Possibility Frontier (PPF) visually represents these trade-offs, helping inform decisions about resource allocation. The correct answer to the question is A. analysis.
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Opportunity cost is best demonstrated through production possibility analysis, which models trade-offs between goods. The Production Possibility Frontier (PPF) visualizes these trade-offs and the costs of choosing one good over another. This analysis helps in making informed resource allocation decisions. ;