If production involves decreasing opportunity cost, the production possibilities curve
A)is "bowed inward."
B)is a straight line.
C)is "bowed outward."
D)is a wavy line.
E)has an unpredictable shape.

Question

If production involves decreasing opportunity cost, the production possibilities curve
A)is "bowed inward." 
B)is a straight line.
C)is "bowed outward." 
D)is a wavy line.
E)has an unpredictable shape.

Quizplus · Accepted Answer

When production involves decreasing opportunity cost, the production possibilities curve is "bowed inward," indicating that as more of one good is produced, the opportunity cost of producing additional units decreases.

If Production Involves Decreasing Opportunity Cost, the Production Possibilities Curve