When is the production possibilities frontier bowed outward?
A) if resources are not perfectly adaptable
B) if the amount of resources increases
C) if the level of technology increases
D) if opportunity costs are constant

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is bowed outward when resources are not perfectly adaptable to the production of both goods. This shape reflects increasing opportunity costs as the production of one good is increased, indicating that resources are better suited for the production of one good over another.

When Is the Production Possibilities Frontier Bowed Outward