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

Question

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

Quizplus · Accepted Answer

The production possibilities curve in Exhibit 2-15 demonstrates the law of increasing opportunity costs. This means that as more of one good is produced, the opportunity cost of each additional unit increases. This is shown by the curve bowing outward, indicating that as we move along the curve, more and more of one good must be given up to produce each additional unit of the other good.

Exhibit 2-15 Production Possibilities Curve