Table 2-5

-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Based on the values in the table,the production possibilities frontier is

Question

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Based on the values in the table,the production possibilities frontier is

Quizplus · Accepted Answer

The production possibilities frontier in Table 2-5 is bowed outward, indicating increasing opportunity costs. This means that as more of one good is produced, the opportunity cost of producing additional units of that good increases in terms of the other good that must be given up. This is represented by the increasing slope of the production possibilities frontier from left to right.

Table 2-5 -Refer to Table 2-5.Table 2-5 Shows One Set of Production