The efficiency frontier has a convex shape because of

Question

Quizplus · Accepted Answer

The efficiency frontier represents the maximum output that can be achieved for a given set of inputs. As more of a particular input is used, there is typically a diminishing marginal return, meaning that each additional unit of input produces less additional output than the previous unit. This results in a convex shape for the efficiency frontier, as the initial increases in output are more significant than later increases.

The Efficiency Frontier Has a Convex Shape Because of