Given below is the production possibilities schedule for capital goods and consumer goods.
Table 2.3
$\begin{array}{c}
\text { Production Possibilities Schedule }\
\begin{array}{|c|c|c|}
\hline \text { Combination } & \text { Capital Goods } & \text { Consumer Goods } \
\hline \text { A } & 4 & 0 \
\text { B } & 3 & 4 \
\text { C } & 2 & 7 \
\text { D } & 1 & 9 \
\text { E } & 0 & 10 \
\hline
\end{array}
\end{array}$
-Consider Table 2.3. The production possibilities curve [PPC] representing this schedule would be:

Question

Given below is the production possibilities schedule for capital goods and consumer goods.
Table 2.3
 $\begin{array}{c}
\text { Production Possibilities Schedule }\
\begin{array}{|c|c|c|}
\hline \text { Combination } & \text { Capital Goods } & \text { Consumer Goods } \
\hline \text { A } & 4 & 0 \
\text { B } & 3 & 4 \
\text { C } & 2 & 7 \
\text { D } & 1 & 9 \
\text { E } & 0 & 10 \
\hline
\end{array}
\end{array}$
-Consider Table 2.3. The production possibilities curve [PPC] representing this schedule would be:

Quizplus · Accepted Answer

The production possibilities schedule shows increasing opportunity costs, meaning the only way to produce more consumer goods is to give up producing some capital goods. This leads to a bowed-out shape of the production possibilities curve, indicating that the opportunity cost of producing additional units of consumer goods increases as an economy moves along the production possibilities curve.

Given Below Is the Production Possibilities Schedule for Capital Goods