When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost
A) decreases.
B) increases.
C) remains constant.
D) might increase, decrease or remain constant depending on how much people value the additional units of the good.
E) cannot be predicted.

Question

Quizplus · Accepted Answer

When a production possibilities frontier is bowed outward, it indicates increasing opportunity costs. This means that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases. Therefore, the answer is B.

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