Increasing-cost production-possibility curves are bowed out from the origin.

Name: Increasing-cost production-possibility curves are bowed out from the origin.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

Increasing-cost production-possibility curves are bowed out from the origin due to the law of increasing opportunity cost, which states that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases, leading to a higher trade-off in terms of the other good.

Increasing-Cost Production-Possibility Curves Are Bowed Out from the Origin