Why are production possibilities frontiers usually bowed outward?
A) The more resources a society uses to produce one good, the fewer resources it has available to produce another good.
B) It reflects the fact that the opportunity cost of producing a good falls as more of the good is produced.
C) It is because of the effects of technological change.
D) Resources are specialized; that is, some are better at producing particular goods rather than other goods.

Question

Quizplus · Accepted Answer

The production possibilities frontier is bowed outward because resources are specialized and not equally efficient in producing every good, leading to increasing opportunity costs as more of one good is produced.

Why Are Production Possibilities Frontiers Usually Bowed Outward