A production possibilities curve will be concave as opposed to straight line if
A)the law of increasing opportunity costs applies.
B)some resources cannot be easily adapted to different tasks.
C)the opportunity cost of the production of a good increases as more of it is produced.
D)all of the above

Question

A production possibilities curve will be concave as opposed to straight line if
A)​the law of increasing opportunity costs applies.
B)​some resources cannot be easily adapted to different tasks.
C)​the opportunity cost of the production of a good increases as more of it is produced.
D)​all of the above

Quizplus · Accepted Answer

A concave production possibilities curve indicates that the law of increasing opportunity costs applies, meaning that as more of a good is produced, the opportunity cost of producing additional units increases. Additionally, if some resources are specialized and cannot be easily adapted to different tasks, this would also lead to a concave curve. Therefore, both options A and B are correct.

A Production Possibilities Curve Will Be Concave as Opposed to Straight