As more salads are produced, increasing amounts of hamburgers must be given up to produce them. What is the shape of the production possibilities frontier (PPF) for salads and hamburgers?
A) convex
B) concave
C) linear
D) vertical

Question

Quizplus · Accepted Answer

The PPF is concave because it reflects increasing opportunity costs; as more salads are produced, more hamburgers must be sacrificed, indicating that resources are not perfectly adaptable between the two goods.

As More Salads Are Produced, Increasing Amounts of Hamburgers Must