A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced.

Question

Quizplus · Accepted Answer

A production possibilities frontier (PPF) that is bowed outward (concave to the origin) indicates increasing opportunity costs. As more of one good is produced, larger quantities of the other good must be given up, reflecting the principle of increasing opportunity costs.

A Production Possibilities Frontier with a ________ Shape Indicates Increasing