Exhibit 2-15 Production possibilities curve In Exhibit 2-15, the production possibilities curve demonstrates:

Question

Exhibit 2-15  Production possibilities curve  In Exhibit 2-15, the production possibilities curve demonstrates:

Quizplus · Accepted Answer

The production possibilities curve illustrates the law of increasing opportunity costs, meaning that as more of one good is produced, the opportunity cost of producing additional units of that good increases, resulting in a bowed-out curve. The other choices (changing prices, economic growth, decreases in resources, changing technology) can all affect the location and shape of the production possibilities curve, but they are not what is being demonstrated by the curve itself.

Exhibit 2-15 Production Possibilities Curve in Exhibit 2-15, the Production