If a production possibilities curve were bowed in or convex to the origin of a graph, it would demonstrate:
A) increasing opportunity cost.
B) decreasing opportunity cost.
C) constant opportunity cost.
D) fluctuating opportunity cost.

Question

Quizplus · Accepted Answer

A production possibilities curve that is bowed in or convex to the origin demonstrates decreasing opportunity cost. This means that as you produce more of one good, the opportunity cost of producing an additional unit of that good decreases. This shape contrasts with a concave curve, which indicates increasing opportunity costs.

If a Production Possibilities Curve Were Bowed in or Convex