the widespread spread of the virus. If this situation becomes unmanageable, supply decreases and the supply curve shifts to the left (curve S2 in Graph1.11). A perfect competition model can be used to express the concept of opportunity cost in the health sector. In perfect competition, market equilibrium is understood as the point where supply and demand are exactly the same (points P and Q in Graph1.11). The balance is Pareto optimal equals marginal opportunity cost. Medical allocation may result in some people being better off and others worse off. At this point, it is assumed that the market has produced the maximum outcome associated with the Pareto partial order. As a result, the opportunity cost increases when other patients cannot be admitted to the ICU due to a shortage of beds. See also Austrian School Best alternative to a negotiated agreement Budget constraint Economies of scale Econometrics Fear of missing out Production–possibility frontier Reduced cost aka 'opportunity cost' in linear programming There ain't no such thing as a free lunch Time management Trade-off Transaction cost You can't have your cake and eat it Perverse subsidies References External links The Opportunity Cost of Economics Education by Robert H. Frank Costs Economics and time