-Refer to the above diagram.This production possibilities curve is:
A) convex to the origin because opportunity costs are constant.
B) linear because opportunity costs are constant.
C) concave to the origin because of increasing opportunity costs.
D) convex to the origin because of increasing opportunity costs.

Question

-Refer to the above diagram.This production possibilities curve is:
A) convex to the origin because opportunity costs are constant. 
B) linear because opportunity costs are constant. 
C) concave to the origin because of increasing opportunity costs. 
D) convex to the origin because of increasing opportunity costs.

Quizplus · Accepted Answer

A production possibilities curve is concave to the origin when there are increasing opportunity costs, meaning that producing more of one good requires larger and larger sacrifices of the other good.

-Refer to the Above Diagram