The production possibility curve under increasing opportunity costs is concave to the origin because
A)The opportunity cost of leaving a unit of one commodity to have an additional unit of the other is constant
B)Each country completely specializes in the production of only one commodity after trade
C)They are the same at all points
D)When a country in the production of one commodity in which it has comparative advantage, its opportunity costs increases

Question

Quizplus · Accepted Answer

The production possibility curve is concave to the origin under increasing opportunity costs because as more of one good is produced, the opportunity cost of producing an additional unit of that good increases, reflecting the need to reallocate resources from the production of another good, in which they might be more efficiently used.

The Production Possibility Curve Under Increasing Opportunity Costs Is Concave