Exhibit 2-15 Production possibilities curve
-In Exhibit 2-15, the production possibilities curve demonstrates:

Question

Exhibit 2-15 Production possibilities curve 
-In Exhibit 2-15, the production possibilities curve demonstrates:

Quizplus · Accepted Answer

The production possibilities curve demonstrates the law of increasing opportunity costs, which refers to the concept that as production of one good increases, the opportunity cost of producing an additional unit of that good increases. This is shown by the curve bowing outward from the origin, indicating that as more of one good is produced, increasing amounts of the other good must be given up. None of the other choices are reflected in the production possibilities curve.

Exhibit 2-15 Production Possibilities Curve