A society can produce two goods: green tea and vitamin water. As this society moves down its production possibility frontier, producing more and more units of vitamin water, the opportunity cost of producing vitamin water increases. The society's production possibilities frontier will be

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The society's production possibilities frontier (PPF) is negatively sloped because producing more of one good requires sacrificing some of the other. It is bowed outward (concave to the origin) due to increasing opportunity costs, indicating that as more vitamin water is produced, the society must give up increasingly larger amounts of green tea, reflecting the principle of increasing opportunity cost.

A Society Can Produce Two Goods: Green Tea and Vitamin