Increasing opportunity cost is represented by a ________ production possibilities frontier.
A)linear
B)bowed in
C)bowed out
D)vertical

Question

Quizplus · Accepted Answer

A bowed out production possibilities frontier indicates that as more of one good is produced, the opportunity cost of producing that good increases. This means that society must give up increasing amounts of the other good for each additional unit of the first good produced. As a result, the trade-off becomes more costly, and the curve bows outward. Therefore, increasing opportunity cost is represented by a bowed out production possibilities frontier.

Increasing Opportunity Cost Is Represented by a ________ Production Possibilities