The production possibilities frontier is __________ because, as more of a country's fixed resources are used to produce an item using the same technology, the opportunity cost of producing the item usually __________.
A) convex; rises
B) convex; falls
C) concave; rises
D) concave; falls

Question

Quizplus · Accepted Answer

The production possibilities frontier is concave because as more resources are allocated to produce one good, the opportunity cost of producing additional units increases due to the law of increasing opportunity costs.

The Production Possibilities Frontier Is __________ Because, as More of a Country's