The existence of increasing opportunity cost
A)explains why some societies produce inside their production possibilities frontier.
B)explains why specialization is frequently useful.
C)follows from the existence of property rights.
D)explains why resources are scarce.
E)explains the bowed- out shape of the production possibilities frontier.

Question

Quizplus · Accepted Answer

Increasing opportunity cost is reflected in the bowed-out shape of the production possibilities frontier, where the opportunity cost of producing one good increases as more of that good is produced, leading to a trade-off between producing different goods.

The Existence of Increasing Opportunity Cost