If a country is subject to increasing costs, then its production possibilities frontier is:
A) concave to the origin.
B) convex to the origin.
C) a straight line.
D) a fixed line.
E) All of the above

Question

Quizplus · Accepted Answer

A production possibilities frontier (PPF) that is concave to the origin represents increasing opportunity costs. As a country produces more of one good, it must give up increasingly larger amounts of the other good, due to factors such as resource specialization and inefficiencies.

If a Country Is Subject to Increasing Costs, Then Its