A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production.
B) that the trade-off between the 2 goods is not constant.
C) changing technology.
D) only 1 good is always being produced.

Question

Quizplus · Accepted Answer

A bowed-out (concave) Production Possibilities Curve (PPC) indicates that the opportunity cost of producing one good in terms of another increases as more of that good is produced, reflecting a non-constant trade-off between the two goods. This shape often results from differing factor intensities or efficiencies in producing the two goods.

A Bowed Production Possibilities Curve (PPC) Indicates