Production possibilities curve are usually bowed outward. This is because
A) the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
B) it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced.
C) of the effects of technological change.
D) resources are specialized, that is, some are better at producing particular goods rather than other goods.

Question

Quizplus · Accepted Answer

The production possibilities curve is bowed outward because resources are specialized; some resources are more efficient in producing certain goods than others, leading to increasing opportunity costs as production shifts from one good to another.

Production Possibilities Curve Are Usually Bowed Outward