A production possibilities curve that is bowed outward indicates that

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A production possibilities curve that is bowed outward (or concave) indicates that the opportunity cost of producing one good increases as more of it is produced. In other words, producing additional units of output of one good necessitates increased reductions in the other good as more and more of the first is produced. This is because resources are not perfectly adaptable to the production of both goods, and therefore as more resources are shifted towards producing one good, the opportunity cost of producing the other good increases.

A Production Possibilities Curve That Is Bowed Outward Indicates That