The law of increasing opportunity costs is reflected in a production possibilities curve that:
A)is an upward-sloping straight line
B)is a downward-sloping straight line
C)bows in to the left
D)is any shape
E)bows out to the right

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs is reflected in a production possibilities curve that bows out to the right. This shape indicates that as more of one good is produced, the opportunity cost of producing additional units of this good increases, because resources are not perfectly adaptable for producing both goods.

The Law of Increasing Opportunity Costs Is Reflected in a Production