Along a production possibilities curve that is concave to the origin, what happens to the opportunity cost of production of the good on the X-axis as we move down along the curve?

Question

Quizplus · Accepted Answer

The production possibilities curve being concave to the origin implies increasing opportunity costs. As we move down along the curve, producing more of the good on the X-axis requires giving up increasingly more of the good on the Y-axis, hence the opportunity cost increases.

Along a Production Possibilities Curve That Is Concave to the Origin