A bowed outward production possibilities frontier occurs when

Question

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A bowed outward production possibilities frontier occurs when producing more of one good requires increasing amounts of the other good to be sacrificed. In other words, the opportunity cost of producing one good increases as more of it is produced. This indicates that resources are not perfectly adaptable to produce both goods and that there are diminishing returns to producing more of one good.

A Bowed Outward Production Possibilities Frontier Occurs When