The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that:
A)a curve makes it easier to illustrate the concepts of scarcity and prices than a straight line.
B)early economists began drawing them in this way and the convention has continued throughout the years.
C)output eventually reaches a maximum and then declines.
D)resources are not perfectly adaptable to the production of all goods.
E)the frontier will shift outward over time.

Question

Quizplus · Accepted Answer

The production possibilities frontier is usually a bow-shaped curve because resources are not perfectly adaptable to the production of all goods. This means that as more of one good is produced, the opportunity cost of producing that good increases, eventually leading to diminishing marginal returns and a decline in the production of the other good. A straight line would imply that resources can be easily shifted between the production of any two goods at a constant opportunity cost, but this is rarely the case in real-world economies.

The Reason That the Production Possibilities Frontier Is Usually a Bow-Shaped