In which of the following cases will the production possibility frontier depict an increasing opportunity cost of producing one good relative to another?
A)The PPF becoming more linear
B)The PPF becoming more convex to the origin
C)The PPF becoming more concave to the origin
D)The PPF curve becoming flatter

Question

Quizplus · Accepted Answer

A concave PPF indicates increasing opportunity cost. As we produce more of one good, we have to give up increasing amounts of the other good, which means opportunity cost of producing the first good increases.

In Which of the Following Cases Will the Production Possibility