If there is an increase in the amount of good B foregone as every additional unit of good A is produced,the PPF between goods A and B would
A) be a straight line.
B) be a bowed-outward curve.
C) be a bowed-inward curve.
D) not exist.

Question

Quizplus · Accepted Answer

The description given matches the concept of increasing opportunity cost, which is represented graphically by a bowed-outward (concave to the origin) production possibilities frontier (PPF). This shape reflects the fact that as more of good A is produced, the opportunity cost (in terms of good B that must be given up) increases.

If There Is an Increase in the Amount of Good