Below is a production possibilities curve involving tea and videos.

-Refer to the graph above to answer this question.What is indicated by the shape of both the PPI and the PPII curves?
A)Constant costs.
B)Alternative costs.
C)Increasing costs.
D)Decreasing costs.

Question

Below is a production possibilities curve involving tea and videos.
 
-Refer to the graph above to answer this question.What is indicated by the shape of both the PPI and the PPII curves?
A)Constant costs. 
B)Alternative costs. 
C)Increasing costs. 
D)Decreasing costs.

Quizplus · Accepted Answer

The shape of both PPI and PPII curves indicates increasing costs, meaning that as more tea or videos are produced, the opportunity cost of producing the other good increases. Therefore, the best choice(s) would be along the curve, where resources are being used efficiently to produce a combination of tea and videos that maximizes output, given the limited resources available.

Below Is a Production Possibilities Curve Involving Tea and Videos