What is the difference between production possibilities frontiers that are bowed out and those that are linear?
A) Bowed out production possibilities frontiers illustrate tradeoffs, whereas linear production possibilities frontiers do not.
B) Bowed out production possibilities frontiers show increasing opportunity cost, whereas linear ones show constant opportunity cost.
C) Bowed out production possibilities frontiers are the result of perfectly adaptable resources whereas linear production possibilities frontiers are not.
D) Bowed out production possibilities frontiers illustrate real world conditions less than linear production possibilities frontiers.

Question

Quizplus · Accepted Answer

Bowed out production possibilities frontiers show increasing opportunity cost as one good is produced more and more, whereas linear ones show constant opportunity cost. This means that as more of one good is produced, the amount of the other good given up increases at an increasing rate with bowed out production possibilities frontiers, while it stays the same with linear production possibilities frontiers.

What Is the Difference Between Production Possibilities Frontiers That Are