A Production Possibilities Curve is concave to the origin due to:
A)Overconsumption by consumers
B)Inefficient processes
C)Decreased raw materials availability
D)Increased opportunity costs

Question

Quizplus · Accepted Answer

A Production Possibilities Curve (PPC) is concave to the origin due to increased opportunity costs.
Key Takeaway: A PPC is concave to the origin to reflect increasing opportunity costs associated with increasing output of manufactured goods. A PPC can also be linear or convex depending on a number of factors, such as transformation rate and technological capability.

A Production Possibilities Curve Is Concave to the Origin Due