Production possibilities frontiers are typically concave (bowed out) from the origin because
A) of the law of supply
B) there is usually a one-for-one trade-off in resources used in production
C) economies of scale enable firms to reduce the average costs of production as output rises
D) the opportunity cost of a good rises as the quantity of the good produced increases
E) resources are often left idle in the firm
Correct Answer:
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Q9: An economy's production possibilities frontier is fixed
Q10: One of the concepts that is illustrated
Q11: When opportunity costs rise as more of
Q12: Figure 2-3 Q13: Figure 2-1 Q15: Combinations of goods outside the production possibilities Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
