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The Main Reason Why a Production Possibilities Frontier Would Have

Question 4

Multiple Choice

The main reason why a production possibilities frontier would have a concave shape is:


A) because of decreasing opportunity costs
B) because the rate at which one good can be substituted for another is fixed.
C) because as a country specializes in one product, it must give up more of the other.
D) because consumers face diminishing marginal returns in consumption.

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