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When a production possibilities frontier is bowed outward, as more of one good is produced, its...

Question:

When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost:

a. increases.

b. decreases.

c. might increase, decrease, or remain constant depending on how much people value the additional units of the good

d. remains constant.

Production Possibilities Frontier:

A picture that depicts several combinations of two different goods in a curve with available scarce resources and technology is called the production possibilities frontier.

Answer and Explanation: 1

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The correct option is a) increases

It is correct because the concept of increasing opportunity cost states that if the production possibilities...

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Opportunity Cost: Definition & Examples

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Chapter 1 / Lesson 2
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What is Opportunity Cost? Learn the definition and explore real-life examples of this concept. Also, learn the types of opportunity costs and what they represent.


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