We use a particular kind of graph to illustrate economic cost or opportunity cost. Remember, our definition of cost hinges on the idea of forgone opportunities. Any decision, choice, or action involves a trade-off.

   We can illustrate this idea with a simple example involving only two choices. Let's use an example that is probably close to your heart, the trade-off between fun and grades. Of course, if you're at one of the traditional "party schools" this may not be a great concern. Indeed that is the appeal of the party school, but then you would not be reading this if you were at a party school.

   While not all students are created equally, most students find that they face this trade-off. If too much time is spent in non-academic activities, grades suffer. If too much time is spent in academic activities, social life (fun) suffers. Let's examine this graphically...

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