-The production possibilities curve shown in Diagram 26.1c reflects
A) constant opportunity costs
B) increasing opportunity costs
C) no opportunity costs.
D) unlimited resources.

Question

-The production possibilities curve shown in Diagram 26.1c reflects
A) constant opportunity costs 
B) increasing opportunity costs 
C) no opportunity costs. 
D) unlimited resources.

Quizplus · Accepted Answer

The production possibilities curve that reflects increasing opportunity costs is concave to the origin. This shape indicates that as production of one good increases, the opportunity cost of producing an additional unit of this good increases, which is a fundamental principle of economics.

-The Production Possibilities Curve Shown in Diagram 26