Why are production possibilities frontiers usually bowed outward?
A) constant opportunity cost
B) increasing opportunity cost
C) decreasing opportunity cost
D) increasing productivity

Question

Quizplus · Accepted Answer

Production possibilities frontiers are usually bowed outward due to increasing opportunity cost. As the production of one good increases, the opportunity cost of producing an additional unit of that good increases as resources are shifted away from the production of the other good. This results in a trade-off between the production of the two goods, leading to a bowed-out shape of the production possibilities frontier.

Why Are Production Possibilities Frontiers Usually Bowed Outward