A production possibilities frontier with increasing opportunity cost is considered:

Question

Quizplus · Accepted Answer

A bowed or concave PPF indicates that the opportunity cost of producing one good increases as the production of that good increases, due to the fact that not all resources are equally efficient at producing both goods. This is consistent with the concept of increasing opportunity cost, where as more of one good is produced, the opportunity cost of producing each additional unit increases.

A Production Possibilities Frontier with Increasing Opportunity Cost Is Considered