If production involves decreasing opportunity cost, the production possibilities frontier
A)is "bowed inward."
B)is a straight line.
C)is "bowed outward."
D)is a wavy line.
E)has an unpredictable shape.

Question

Quizplus · Accepted Answer

A production possibilities frontier that is "bowed inward" indicates decreasing opportunity costs, as producing more of one good requires giving up increasingly smaller amounts of the other good.

If Production Involves Decreasing Opportunity Cost, the Production Possibilities Frontier