The fact of increasing opportunity costs means that a production possibilities frontier will
A) bow outward.
B) be a straight line.
C) reach a maximum and then gradually decrease.
D) shift outward over time.

Question

Quizplus · Accepted Answer

The increasing opportunity cost means that it becomes more expensive to produce one good as we produce more of it. This will cause the production possibilities frontier to bow outward, reflecting the increasing trade-off between the two goods.

The Fact of Increasing Opportunity Costs Means That a Production