The law of increasing opportunity costs causes the production possibilities curve to:

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as society produces more of a good, the opportunity cost of producing an additional unit of that good increases. This means that resources that are better suited for the production of one good become increasingly scarce as more of that good is produced. This leads to diminishing marginal returns and a bowed-out shape of the production possibilities curve, where the slope becomes steeper as we move down the curve. Therefore, the correct answer is choice C.

The Law of Increasing Opportunity Costs Causes the Production Possibilities