-The shape of each production possibilities curve:
A)indicates that resources shift perfectly from one use to another
B)indicates that resources are virtually unlimited
C)indicates that prices are constant
D)illustrates the law of increasing opportunity costs
E)shows that consumer wants are variable

Question

-The shape of each production possibilities curve:
A)indicates that resources shift perfectly from one use to another 
B)indicates that resources are virtually unlimited 
C)indicates that prices are constant 
D)illustrates the law of increasing opportunity costs 
E)shows that consumer wants are variable

Quizplus · Accepted Answer

The shape of each production possibilities curve illustrates the law of increasing opportunity costs, which states that as production of one good increases, the opportunity cost of producing an additional unit of this good increases. This is because resources are not perfectly adaptable to the production of both goods.

-The Shape of Each Production Possibilities Curve