The fact that opportunity costs increase while moving along a production possibilities frontier means that the production possibilities frontier will
A) be a straight line with a constant and positive slope.
B) be bowed out, away from the origin.
C) be bowed in, toward the origin
D) reach a minimum and then rapidly increase.

Question

Quizplus · Accepted Answer

The increasing opportunity costs mean that in order to produce more of one good, more and more of the other good must be given up. This results in a bowed-out shape of the production possibilities frontier, also known as the law of increasing opportunity cost.

The Fact That Opportunity Costs Increase While Moving Along a Production