THERE IS A LIMITED PERIOD OF TIME, CAN WE STUDY AND ALSO PARTY TO THE FULLEST?

OPPORTUNITY COST:

        It is the basis of cost/benefit economic reasoning. It is the benefit declined, or the cost, of the next  best alternative to the activity you have chosen. This benefit declined is the benefit that you might have gained from choosing the next best alternative. To obtain the benefit of something, you must give up something else- namely the next best alternative. All the activities that have next-best alternative have an opportunity cost. 

Example: The decision about how much you study. You have limited period of time to study, sleep and party. The more time you spend on one activity like studying, the less time you have foe another like partying or sleeping. This is opportunity cost.

PRODUCTION POSSIBILITY CURVE:

        Opportunity cost can be seen numerically with a production possibility table- the table that lists a choice's opportunity costs by summarizing what alternative outputs you can achieve with your inputs. An output is simply a result of an activity and an input is what you put into a production process to achieve an output. 

Example: You grade in a course is an output and your study time is an input.

        The information in the production possibility table can also be presented graphically in a diagram called a production possibility curve. A production possibility curve is a curve measuring the maximum combination of outputs that can be obtained from a given number of inputs. In simpler terms, it is the graphical representation of the opportunity cost concept. The production possibility curve slopes downward from left to right. that means that there is an inverse relationship between the two taken things. for example studying and partying. The better you spend time for studying, the worse you can have time for partying, and vice versa. The downward slope represents the opportunity cost concept - you get more of one benefit only if you get less of another benefit.This curve not only represents the opportunity cost concept but it also measures the opportunity cost.It can be done by moving the points in the graph.

To summarize, the production possibility curve demonstrates that:

1. there is a limit to what you can achieve, given the existing institutions,resources and technology.

2. Every choice you make has an opportunity cost. You can get more of something only by giving up something else.