Assume that an economy has a bowed-out production possibilities frontier and that an economy is operating on the frontier.What happens when more of one good is produced?

Question

Quizplus · Accepted Answer

When an economy operates on a bowed-out production possibilities frontier, producing more of one good increases the opportunity cost of that good. However, the question about technology is unrelated to the shape of the PPF, and it remains constant unless stated otherwise.

Assume That an Economy Has a Bowed-Out Production Possibilities Frontier