Why Is a Production Possibilities Frontier Bowed Out (Concave)

question 38

Multiple Choice

Why is a production possibilities frontier bowed out (concave) ?

• A) The bowed shape reflects constant opportunity cost.
• B) The bowed shape reflects decreasing opportunity cost.
• C) The bowed shape indicates that opportunity cost at first decreases at a decreasing rate, and then begins to decrease at an increasing rate.
• D) The bowed shape indicates that opportunity cost at first increases at a decreasing rate, and then begins to increase at an increasing rate.
• E) The bowed shape reflects increasing opportunity cost.

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