The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.

Name: The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.
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Question

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The bowed-out shape of the production possibilities frontier indicates that as one good is produced more, the opportunity cost of producing the other good increases. This is due to the fact that resources are not equally efficient in producing all goods, resulting in increasing opportunity costs.

The Bowed-Out Shape of the Production Possibilities Frontier Indicates Increasing