Assume a farmer has the ability to produce corn and/or beans. Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans, he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels. In view of these assumptions, the farmer's production possibilities frontier is bowed out.

Question

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The farmer's production possibilities frontier is a straight line, not bowed out, because the opportunity cost of producing corn in terms of beans is constant (2 bushels of corn for 3 bushels of beans).

Assume a Farmer Has the Ability to Produce Corn And/or