A production possibilities frontier (PPF)is characterized by increasing opportunity costs when
A)the PPF is a straight line
B)the PPF is bowed inward
C)the PPF is bowed outward
D)increasing opportunity costs do not occur with PPF's

Question

A production possibilities frontier (PPF)is characterized by increasing opportunity costs when
A)​the PPF is a straight line
B)​the PPF is bowed inward
C)​the PPF is bowed outward
D)​increasing opportunity costs do not occur with PPF's

Quizplus · Accepted Answer

A PPF is bowed outward when opportunity costs increase, as producing more of one good requires larger sacrifices of the other good.

A Production Possibilities Frontier (PPF)is Characterized by Increasing Opportunity Costs