Diner City

I recently played the game Diner City. The game allows you to run a restaurant and compete with another one. You start with one employee and $50. From there you can decide what improvements you can make to the restaurant by making certain purchases. Most purchases increase revenue per customer while others add seats to the restaurant. You also get to see what your opponent is doing. The object of the game is to beat your competitor in revenue and sales.

When the game begins there is a scarcity of resources. Here the scarce resources would be money and employees. The game is also showing an example of working in a competition economy. As you accumulate more money, you can accumulate more employees and resources; increasing the speed of service and revenue per customer.

Production Possibilities

The production possibilities curve graph shows a combination of outcomes when two items are produced. It shows how the production of one product effects the production of another when production is increased or decreased.  The PPC curve shifts to the dotted position due to improvements in technology which increases productivity.

The graph demonstrates scarcity, opportunity cost and choice by showing that in order to produce one product; we have to produce less of the other. We must make a choice by deciding which product we need more of.

One opportunity cost I have experienced by returning to school is that I work less and therefore make less money. More school, less work. A choice I have made based on scarcity would be choosing returning to school over guitar lessons. Deciding to complete my post secondary education in hope of a better career over continuing my hobby will hopefully pay off in the future. In this case time and money are limited.