Production under increasing opportunity costs can result from the two industries using factors of production in different combinations.

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When two industries use factors of production in different combinations, it can lead to increasing opportunity costs of producing one good over another. This is because as more resources are allocated to one industry, the cost of producing additional units of that good increases, while the output of the other industry may remain constant or even decrease due to diminishing returns. Therefore, the production possibilities curve (PPC) of an economy under increasing opportunity costs is concave to the origin, reflecting the fact that more and more resources are needed to produce additional units of a good as society moves along the curve.

Production Under Increasing Opportunity Costs Can Result from the Two