Refer to the diagram below.The concave shape of each production possibilities curve indicates that:

Question

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The concave shape of the production possibilities curve implies that resources are not equally suited for alternative uses. This means that there is a trade-off between producing one good and the other, and as more of one good is produced, the opportunity cost of producing the other good increases. This is because as more resources are allocated towards one good, the marginal benefit of allocating an additional unit of resources towards that good decreases while the marginal benefit of allocating the same unit of resources towards the other good increases. Therefore, the curve is concave, indicating diminishing marginal returns and increasing opportunity costs.

Refer to the Diagram Below