In the specific factors model,a country's production possibility frontier is because of .
A)a curved line; diminishing marginal returns
B)a curved line; constant marginal returns
C)a curved line; a limited supply of labor
D)a straight line; diminishing marginal returns
E)a straight line; constant marginal returns

Question

Quizplus · Accepted Answer

In the specific factors model, the production possibility frontier (PPF) is a curved line due to diminishing marginal returns. This occurs because as more of a variable factor (like labor) is added to fixed factors (like land or capital), the additional output produced from each additional unit of the variable factor decreases.

In the Specific Factors Model,a Country's Production Possibility Frontier Is