A production possibilities curve that is bowed outward occurs when

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A production possibilities curve that is bowed outward occurs when successive additions of one good require greater and greater reductions in the other. This implies that the opportunity cost of producing one good in terms of the other increases as more of that good is produced. In other words, resources are not equally efficient in producing all goods and services, resulting in a tradeoff between producing one good or the other.

A Production Possibilities Curve That Is Bowed Outward Occurs When