The curvature of an economy's production possibilities curve represents ________.

Question

Quizplus · Accepted Answer

The curvature of the production possibilities curve represents the increasing opportunity cost of producing each good. As we move along the curve, producing more of one good comes at the expense of producing less of the other, and the opportunity cost of producing the additional unit of the first good increases. This is reflected in the curve's shape, which is bowed outwards towards the origin.

The Curvature of an Economy's Production Possibilities Curve Represents ________