Asked by
Shauna Perkins
on Nov 11, 2024
Verified
The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that:
A) a curve makes it easier to illustrate the concepts of scarcity and prices than a straight line.
B) early economists began drawing them in this way and the convention has continued throughout the years.
C) output eventually reaches a maximum and then declines.
D) resources are not perfectly adaptable to the production of all goods.
E) the frontier will shift outward over time.
Bowed-shaped Curve
A graphical representation that shows a diminishing rate of return, illustrating that as more of one good is produced, greater sacrifices are made in foregone production of another good.
- Identify the principle of rising opportunity costs and its depiction through a concave production possibility frontier.
- Comprehend the reasons behind the typical concave shape of the Production Possibility Frontier, attributed to the differing flexibility of resources when allocated to the production of various commodities.
Verified Answer
KP
Learning Objectives
- Identify the principle of rising opportunity costs and its depiction through a concave production possibility frontier.
- Comprehend the reasons behind the typical concave shape of the Production Possibility Frontier, attributed to the differing flexibility of resources when allocated to the production of various commodities.
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