If a production possibilities frontier (PPF)is concave outward, it follows that
A)opportunity costs are constant between two goods.
B)the opportunity cost (of producing the good on the horizontal axis)rises as more of the good is produced.
C)the opportunity cost (of producing the good on the horizontal axis)falls as more of the good is produced.
D)the opportunity cost (of producing the good on the horizontal axis)first rises and then falls as more of the good is produced.

Question

Quizplus · Accepted Answer

A concave outward PPF indicates increasing opportunity costs, meaning that as more of the good on the horizontal axis is produced, the opportunity cost of producing additional units increases.

If a Production Possibilities Frontier (PPF)is Concave Outward, It Follows