To graphically demonstrate the principle of increasing marginal opportunity cost, the production possibility curve must be:
A) flat.
B) straight.
C) bowed out.
D) bowed in.

Question

Quizplus · Accepted Answer

A bowed-out production possibility curve demonstrates increasing marginal opportunity cost, as producing more of one good requires larger sacrifices of the other good.

To Graphically Demonstrate the Principle of Increasing Marginal Opportunity Cost