Generally, opportunity costs increase and the production possibilities frontier bows outward. Why?

Question

Quizplus · Accepted Answer

Opportunity costs increase because resources are not equally useful in all activities, meaning that as more of one good is produced, the opportunity cost of producing that good increases. This results in the production possibilities frontier bowing outward, as more resources are allocated to producing both goods. None of the other options provided offer a sufficient explanation for this phenomenon.

Generally, Opportunity Costs Increase and the Production Possibilities Frontier Bows