The law of increasing opportunity cost explains why:

A) opportunity cost is constant along the production possibilities frontier.
B) the production possibilities frontier is downward sloping.
C) the production possibilities frontier is curved.
D) efficient points lie along the production possibilities frontier.
E) technology remains constant along a production possibilities frontier.

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Keyri Alvear · Accepted Answer

Final Answer : C, Explanation :  The law of increasing opportunity cost states that as production of a good increases, the opportunity cost of producing an additional unit rises. This is because resources are not equally efficient in producing every good. As more of a good is produced, resources less suited to its production must be used, increasing the opportunity cost. This results in a production possibilities frontier (PPF) that is curved, typically bowed outward, reflecting the increasing cost of producing more of one good in terms of foregone production of another.

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