Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year.The reason why the production possibilities curve is shaped as it is (bowed outward)is because inputs for healthcare and highways are:

Question

Quizplus · Accepted Answer

The bowed outward shape of the production possibilities curve suggests that the inputs for healthcare and highways are substitutable, but not perfectly substitutable. This means that it is possible to shift resources from one sector to the other, but there are diminishing returns to doing so, and at some point, the opportunity cost of producing more of one good becomes too high relative to the other.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country