The reason that the production possibilities curve is usually a bow-shaped curve instead of a straight line is that
A) it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line
B) early economists began drawing them in this way and the convention has continued throughout the years
C) output eventually reaches a maximum and then declines
D) resources are not perfectly adaptable to the production of all goods

Question

Quizplus · Accepted Answer

The production possibilities curve is bow-shaped because resources are not perfectly adaptable to the production of all goods, leading to increasing opportunity costs as more of one good is produced.

The Reason That the Production Possibilities Curve Is Usually a Bow-Shaped