The law of increasing opportunity costs is reflected in a production possibilities curve that is:

A) an upsloping straight line.
B) a downsloping straight line.
C) bowed out from the origin.
D) bowed in toward the origin.

Question

Rebecca Shakhnis · Accepted Answer

Final Answer : C, Explanation :  The law of increasing opportunity costs states that as the production of one good increases, the opportunity cost of producing additional units of that good increases. This means that the tradeoff between producing two goods is not constant and becomes more costly as we produce more of one good. This results in a production possibilities curve that is bowed out from the origin, reflecting the increasing opportunity cost of producing more of one good. Therefore, option C is the correct answer.

The law of increasing opportunity costs is reflected in a production possibilities curve that is:

A) an upsloping straight line.
B) a downsloping straight line.
C) bowed out from the origin.
D) bowed in toward the origin.

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Learning Objectives

Related questions

The law of increasing opportunity costs is reflected in a production possibilities curve that is:A) an upsloping straight line.B) a downsloping straight line.C) bowed out from the origin.D) bowed in toward the origin.

Definitions

Learning Objectives

Learning Objectives

Related questions

The law of increasing opportunity costs is reflected in a production possibilities curve that is:

A) an upsloping straight line.
B) a downsloping straight line.
C) bowed out from the origin.
D) bowed in toward the origin.