The law of increasing opportunity costs is illustrated by a production possibilities curve that is bowed outward from the origin of the diagram.

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The law of increasing opportunity costs states that as production of one good increases, the opportunity cost of producing an additional unit of that good increases. This is illustrated by a production possibilities curve that is bowed outward from the origin, indicating that producing more of one good requires increasingly larger sacrifices in the production of the other good.

The Law of Increasing Opportunity Costs Is Illustrated by a Production