Increasing opportunity cost is represented by a ________ production possibilities frontier.
A)linear
B)convex
C)concave
D)vertical

Question

Quizplus · Accepted Answer

A concave production possibilities frontier represents increasing opportunity cost. This is because as you produce more of one good, you have to give up increasing amounts of the other good due to the limited resources and factors of production. This leads to a situation where the opportunity cost of producing more of one good goes up as you produce more of it, resulting in a concave curve.

Increasing Opportunity Cost Is Represented by a ________ Production Possibilities